Macro Overview
Global equities retreated as investor concerns over a hawkish Federal Reserve stance and higher interest rates intensified. The S&P 500 (IVV) declined 1.42%, while international markets saw even steeper losses, with Developed ex-U.S. (EFA) falling 2.03%. Emerging Markets (EEM) were the significant underperformer, plunging 5.67% amid a widespread risk-off tone. In contrast, fixed income markets showed resilience as the U.S. Aggregate Bond index (AGG) edged up 0.08%, while Broad Commodities (DJP) dropped 1.45%.
U.S. Size & Style
A distinct defensive rotation was evident across U.S. style factors, with value significantly outperforming growth. Large Growth (IVW) tumbled 2.32%, a much steeper fall than the 0.27% decline for Large Value (IVE). This trend was consistent across the capitalization spectrum, as investors favored less speculative segments of the market. Interestingly, smaller companies demonstrated more resilience than their large-cap counterparts, with the Small Cap index (IJR) down a modest 0.34%.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Large Value (IVE) | -0.27% | -0.41% | 8.30% | 7.48% | 19.99% |
| Large Cap (IVV) | -1.42% | -1.34% | 12.26% | 8.19% | 23.72% |
| Large Growth (IVW) | -2.32% | -2.04% | 15.78% | 8.67% | 26.74% |
| Mid Value (IJJ) | -0.39% | 2.84% | 11.03% | 10.52% | 20.40% |
| Mid Cap (IJH) | -1.01% | 2.70% | 12.53% | 14.64% | 25.12% |
| Mid Growth (IJK) | -1.55% | 2.54% | 13.78% | 18.48% | 29.41% |
| Small Value (IJS) | -0.23% | 2.94% | 14.19% | 17.37% | 37.30% |
| Small Cap (IJR) | -0.34% | 4.22% | 16.53% | 19.34% | 34.47% |
| Small Growth (IJT) | -0.43% | 5.51% | 19.01% | 21.22% | 31.64% |
Explore the U.S. Size & Style Explorer →
U.S. Sectors & Industries
The Technology sector (XLK) led the market lower with a sharp 4.14% decline, driven by a sell-off in semiconductor stocks amid concerns over high valuations. Conversely, defensive sectors attracted capital, with Consumer Staples (XLP) gaining 1.87% and both Health Care (XLV) and Real Estate (XLRE) rising 1.41%. Communication Services (XLC) finished the day with an RSI of 28, moving into oversold territory after recent weakness.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| S&P 500 (SPY) | -1.45% | -1.37% | 12.22% | 8.15% | 23.58% |
| Consumer Staples (XLP) | 1.87% | -0.58% | 3.85% | 9.14% | 5.72% |
| Health Care (XLV) | 1.41% | 1.97% | 5.58% | -0.86% | 17.15% |
| Real Estate (XLRE) | 1.41% | 1.05% | 10.85% | 12.33% | 9.76% |
| Utilities (XLU) | 0.78% | 0.01% | 1.29% | 6.98% | 14.03% |
| Energy (XLE) | 0.74% | -7.80% | -8.02% | 23.47% | 30.52% |
| Communication Services (XLC) | 0.38% | -6.85% | -4.57% | -8.35% | 4.55% |
| Financials (XLF) | 0.34% | 4.10% | 9.74% | -0.78% | 7.66% |
| Consumer Discretionary (XLY) | -1.03% | -4.35% | 3.52% | -4.35% | 6.94% |
| Materials (XLB) | -1.45% | 1.53% | 7.38% | 13.09% | 19.14% |
| Industrials (XLI) | -2.01% | 3.97% | 9.53% | 15.45% | 25.42% |
| Technology (XLK) | -4.14% | 2.23% | 34.65% | 28.24% | 52.46% |
Explore the U.S. Sectors & Industries Explorer →
Global Thematic
Thematic ETFs centered on artificial intelligence and semiconductors bore the brunt of Tuesday’s sell-off, reflecting a pullback from the AI-driven rally. The Roundhill Memory ETF (DRAM) plummeted 14.25%, with other AI-focused funds like (AIS) and (BAI) also posting losses exceeding 7%. In a stark contrast, energy infrastructure and MLP-related funds were among the day’s top performers. The ALERIAN MLP INDEX ETN (AMJB) led the gainers, advancing 2.73%.
| Name (Ticker) | 1-Day |
|---|---|
| Leaders | |
| ALERIAN MLP INDEX ETNS DUE JANUARY 28, 2044 (AMJB) | 2.73% |
| Global X Cybersecurity ETF (BUG) | 2.13% |
| ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB) | 2.04% |
| Alerian MLP ETF (AMLP) | 1.95% |
| WisdomTree Cybersecurity Fund (WCBR) | 1.93% |
| Laggards | |
| Roundhill Memory ETF (DRAM) | -14.25% |
| VistaShares Artificial Intelligence Supercycle ETF (AIS) | -8.85% |
| iShares A.I. Innovation and Tech Active ETF (BAI) | -7.93% |
| Corgi Lithography & Semiconductor Photonics ETF (EUV) | -7.43% |
| Roundhill Generative AI & Technology ETF (CHAT) | -7.40% |
Explore the Thematic Explorer →
Developed ex-U.S. & Emerging Markets
International markets experienced a severe downturn, with Asian tech hubs leading the decline. South Korea (EWY) suffered an exceptional loss of 12.25%, a move that reverberated through the global semiconductor industry. Japan (EWJ) also saw a significant drop of 4.35%. Emerging markets broadly fell 5.67%, dragged down by weakness in technology-heavy markets like Taiwan (EWT), which was down 5.64%.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Developed Markets ex-U.S. | |||||
| Developed ex-U.S. (EFA) | -2.03% | 0.09% | 8.59% | 8.37% | 21.83% |
| Australia (EWA) | -1.51% | -1.26% | 1.16% | 8.50% | 12.08% |
| Canada (EWC) | -0.38% | -0.97% | 6.86% | 7.43% | 28.96% |
| France (EWQ) | -1.02% | 1.42% | 6.94% | 1.83% | 10.77% |
| Germany (EWG) | -1.35% | -2.60% | 6.29% | -1.66% | 2.56% |
| Hong Kong (EWH) | -0.98% | -8.65% | -4.12% | 0.98% | 14.37% |
| Japan (EWJ) | -4.35% | 1.78% | 11.60% | 15.49% | 34.37% |
| Netherlands (EWN) | -3.91% | 2.58% | 18.65% | 20.23% | 34.25% |
| South Korea (EWY) | -12.25% | 5.59% | 43.64% | 97.70% | 183.17% |
| Switzerland (EWL) | 0.38% | -0.12% | 8.94% | 4.35% | 17.04% |
| U.K. (EWU) | -0.26% | -1.83% | 3.74% | 5.11% | 20.31% |
| Emerging Markets | |||||
| Emerging Markets (EEM) | -5.67% | 2.47% | 17.79% | 23.39% | 46.61% |
| Brazil (EWZ) | -0.35% | -5.21% | -6.44% | 8.52% | 29.12% |
| China (MCHI) | -1.99% | -6.10% | -6.19% | -13.18% | -2.47% |
| India (INDA) | -1.70% | 1.41% | 3.02% | -9.21% | -9.65% |
| Indonesia (EIDO) | 0.41% | -5.13% | -19.52% | -33.59% | -25.76% |
| Malaysia (EWM) | -1.03% | -6.53% | -7.16% | -0.10% | 18.00% |
| Mexico (EWW) | -1.62% | -2.49% | 6.64% | 9.37% | 33.41% |
| South Africa (EZA) | -1.86% | -3.01% | 1.56% | -5.11% | 31.56% |
| Taiwan (EWT) | -5.64% | 8.67% | 45.84% | 65.65% | 99.51% |
| Thailand (THD) | -3.05% | -2.33% | 4.98% | 18.82% | 47.78% |
Explore the Global (ex-U.S.) Size & Style Explorer →
Fixed Income
Fixed income markets displayed a flight-to-quality bias amid the sharp equity sell-off, with core government and investment-grade corporate bonds posting modest gains. The U.S. Aggregate Bond ETF (AGG) rose 0.08%, while International USD-hedged bonds (BNDX) gained 0.23%. Credit-sensitive areas were weaker, as High Yield (HYG) slipped 0.09%. Convertible bonds (CWB), which have a high correlation to equities, fell 1.97%, reflecting the stress in the technology sector.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Multisector | |||||
| Long-Term (BLV) | 0.19% | 1.80% | 1.84% | 1.00% | 5.39% |
| Core Enhanced (IUSB) | 0.13% | 0.70% | 0.93% | 0.67% | 4.68% |
| Short-Term (BSV) | 0.10% | 0.21% | 0.36% | 0.32% | 3.18% |
| Core (AGG) | 0.08% | 0.61% | 0.69% | 0.47% | 4.33% |
| Government | |||||
| Intermediate (SPTI) | 0.14% | 0.36% | -0.15% | -0.37% | 2.74% |
| Long-Term (SPTL) | 0.08% | 2.04% | 0.95% | 0.47% | 4.01% |
| Short-Term (SPTS) | 0.07% | 0.19% | 0.36% | 0.48% | 3.06% |
| Ultrashort (BIL) | 0.01% | 0.28% | 0.88% | 1.67% | 3.84% |
| Inflation Protected (TIP) | -0.04% | -0.19% | 0.48% | 0.74% | 3.34% |
| Specialty | |||||
| Mortgage Backed (MBB) | 0.10% | 0.63% | 0.85% | 0.82% | 5.79% |
| Corporate (SPIB) | 0.09% | 0.47% | 0.88% | 0.55% | 4.57% |
| High Yield (HYG) | -0.09% | 0.46% | 2.08% | 1.56% | 5.94% |
| Bank Loans (BKLN) | -0.10% | -0.14% | 0.86% | -0.13% | 4.26% |
| Preferred Stock (PFF) | -0.19% | -1.04% | 2.46% | 1.44% | 7.09% |
| Convertible (CWB) | -1.97% | 2.60% | 17.18% | 22.10% | 35.99% |
| International & EM | |||||
| International USD (BNDX) | 0.23% | 0.90% | 1.48% | 1.27% | 2.23% |
| Emerging USD (EMB) | -0.15% | 1.57% | 3.71% | 2.18% | 10.82% |
| International Local (IGOV) | -0.27% | -1.26% | -0.85% | -1.80% | -2.12% |
| Emerging Local (EMLC) | -0.59% | 0.82% | 2.26% | 0.96% | 8.66% |
| Municipals | |||||
| Long-Term (MLN) | 0.00% | 2.41% | 2.60% | 2.53% | 8.67% |
| Intermediate (MUB) | -0.06% | 1.29% | 1.60% | 1.48% | 6.40% |
| Short-Term (SUB) | -0.13% | 0.39% | 0.45% | 0.80% | 2.77% |
| High Yield (HYD) | -0.15% | 1.39% | 3.01% | 2.17% | 7.21% |
Explore the related Explorers: Taxable → · Municipal → · Specialty →
Commodities
Commodities were broadly lower as a strengthening U.S. dollar and global growth concerns weighed on the complex. Precious metals sold off sharply, with Silver (SLV) plunging 5.40% and Gold (GLD) falling 1.89%. Energy prices continued to decline as the war premium unwound, with WTI Crude (USO) dropping 1.27%. Industrial metals also retreated, evidenced by a 3.84% loss for Copper (CPER).
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Broad Commodities (DJP) | -1.45% | -10.97% | -3.16% | 17.18% | 26.02% |
| Agriculture | |||||
| Sugar (CANE) | 0.54% | -6.67% | -11.58% | -5.28% | -16.08% |
| Corn (CORN) | -0.18% | -8.82% | -9.56% | -5.58% | -6.79% |
| Broad (DBA) | -0.19% | -3.48% | -0.89% | 4.23% | 4.06% |
| Soybeans (SOYB) | -0.29% | -3.15% | 0.33% | 11.02% | 9.62% |
| Wheat (WEAT) | -1.45% | -8.68% | -1.15% | 12.27% | -4.80% |
| Energy | |||||
| Broad (DBE) | -0.63% | -16.23% | -3.76% | 53.97% | 43.86% |
| WTI Crude (USO) | -1.27% | -21.05% | 0.63% | 60.87% | 45.61% |
| Brent Crude (BNO) | -1.35% | -22.65% | -11.15% | 50.21% | 38.79% |
| Natural Gas (UNG) | -2.29% | 5.12% | -1.96% | -6.20% | -31.71% |
| Industrial Metals | |||||
| Broad (DBB) | -3.05% | -5.52% | 7.09% | 6.67% | 31.52% |
| Copper (CPER) | -3.84% | -4.11% | 11.30% | 6.75% | 21.76% |
| Precious Metals | |||||
| Platinum (PPLT) | -1.45% | -14.37% | -12.06% | -19.76% | 27.10% |
| Gold (GLD) | -1.89% | -8.82% | -6.61% | -4.79% | 21.29% |
| Palladium (PALL) | -2.40% | -8.89% | -13.71% | -23.17% | 13.76% |
| Broad (DBP) | -2.46% | -11.00% | -7.93% | -7.35% | 27.53% |
| Silver (SLV) | -5.40% | -18.48% | -10.79% | -13.49% | 69.08% |
Explore the Commodities Explorer →
Cryptocurrency
The risk-off sentiment prevalent in traditional markets extended to the cryptocurrency space, with all major digital asset ETFs recording losses. Bitcoin (IBIT) declined 3.26%, moving in tandem with the technology-heavy Nasdaq. Altcoins experienced more pronounced declines, with Solana (SOLZ) and Ethereum (ETHA) falling 5.43% and 4.13%, respectively. These moves highlight the asset class’s continued sensitivity to broader macroeconomic pressures and investor risk appetite.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Solana (SOLZ) | -5.43% | -18.83% | -25.16% | -45.34% | -55.02% |
| Ethereum (ETHA) | -4.13% | -19.59% | -23.10% | -44.18% | -28.54% |
| Multi-Coin (NCIQ) | -3.39% | -18.06% | -14.51% | -32.34% | -41.13% |
| Bitcoin (IBIT) | -3.26% | -17.81% | -11.84% | -28.88% | -39.82% |
| XRP (XRP) | -2.92% | -17.65% | -23.29% | -39.96% | — |
Explore the Digital Assets Explorer →
What to Watch Today
Looking ahead to Wednesday, market participants will be closely watching for the release of the Federal Reserve’s annual bank stress test results in the afternoon. Key economic data includes the report on New Home Sales and the EIA’s weekly petroleum status report. On the earnings front, the semiconductor sector will be in focus with Micron Technology reporting after the close, which could influence sentiment following Tuesday’s sharp tech sell-off. The U.S. Treasury is also scheduled to hold auctions for 17-week bills and 5-year notes.
