The Daily Note Archives
Macroeconomic Review
6.27.2022
Major macroeconomic releases for the prior and upcoming weeks accompanied by historical macroeconomic data and chart books
Daily Note
6.27.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: U.S. markets surged on Friday to cap off anohter volatile week. The NASDAQ 100 (QQQ) jumped 3.43%, the S&P 500 (SPY) added 3.18%, and the Dow Jones Industrial Average (DIA) gained 2.70%. Last week, QQQ climbed 7.45%, SPY was up 6.62%, and DIA rose 5.46%. All U.S. factor strategies were in positive territory led by S&P 500 High Beta (SPHB,+4.67%) and S&P 500 Growth (SPYG, +3.66%). Developed ex-U.S. Markets (EFA) climbed 2.99% as Netherlands (EWN) and Switzerland (EWL) both gained over 4% on the day and Emerging Markets (EEM, +2.37%) benefitted from South Africa (EZA, +3.97%) and Mexico (EWW, +3.59%).
Sectors: All U.S. sectors were higher by over !% on Friday led by Materials (XLB, +3.97%), Consumer Discretionary (XLY, +3.81%), and Communication Services (XLC, +3.81%). Metals & Mining (XME) climbed 5.32%, lifting XLB while Software & Services (XSE, +4.08%) bolstered Technology (XLK, +3.59%). Financials (XLF) and Industrials (XLI) both added over 3.50% and Real Estate (XLRE) was up 2.17%).
Themes: Global themes were strong as Clean Energy (PBW, -1.05%) was the only thematic segment in the red on Friday. Advanced Materials (REMX, +6.34%) and Casinos & Gaming (BETZ, +5.30%) outperformed. Blockchain (BLOK), FinTech, (FINX), and Cloud Computing (SKYY) all surged over 4.50% while Disruptive Tech (ARKW), Evolving Consumer (SOCL), and Multi-Theme (ARKK) all climbed over 4%.
Commodities & Yields: The U.S. 10-Year Treasury Yield was relatively flat, finishing at 3.124%. The U.S. Dollar (UUP) was down 22 bps, U.S. Aggregate Bonds (AGG) dropped 16 bps, and 20+ Treasury Bonds (TLT) fell 1.38%. Broad Commodities (DJP) rose 36 bps as WTI Curde Oil (USO) increased 2.90% and Nickel (JJN) fell 8.16%.
Daily Note
6.24.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: Major averages ended the day higher on Thursday as the 10-year dipped to its lowest levels in roughly two weeks. Fed Reserve Chairman Jerome Powell also reiterated the central bank's strong commitment to lowering inflation when speaking before Congress yesterday. The NASDAQ 100 (QQQ) climbed 1.49%, the S&P 500 (SPY) added 98 bps, and the Dow Jones Industrial Average (DIA) gained 70 bps. Growth-oriented pockets of the markets outperformed with S&P 500 Pure Growth (RPG, +1.85%) and S&P 500 Growth (SPYG, +1.63%) leading U.S. factor strategies on the day. S&P 500 Pure Value (RPV) fell 74 bps on the day. RPG is down 4.36% over the past month while RPV has declined 8.60%. Developed ex-U.S. Markets (EFA) were relatively flat and Emerging Markets (EEM, +30 bps) received a boost from China (MCHI, +1.78%).
Sectors: Another rough outing on Thursday for Energy (XLE) as it dropped 3.71% and was the worst performing U.S. sector for the second consecutive session. Oil & Gas Equipment & Services (XES, -5.38%) and Oil & Gas Exploration & Production (XOP, -4.33%) were weak once again. XLE has entered oversold territory, but remains 54% above 52-week lows. Materials (XLB) lost 1.37% on the day as Metals & Mining (XME, -3.72%) fell sharply. Utilities (XLU) and Health Care (XLV) were the top performing sectors, both rising over 2%. Real Estate (XLRE) and Consumer Staples (XLP) followed, gaining 1.97% and 1.94%, respectively, while Consumer Discretionary (XLY) and Technology (XLK) each rose around 1.50%. All sectors are currently trading below relative 50-Day Moving Averages. XLK was lifted by Internet (XWEB, +4.58%) and Software & Services (XSW, +3.74%). Biotech (XBI) was the best performing industry once again, jumping another 6.18%. XBI is up 8.68% over the past month.
Themes: Advanced Materials (REMX, -2.18%) and Casinos & Gaming (BETZ, -20 bps) were the only thematic segments to post losses on Thursday while the majority of segments jumped over 2%. Genomics (ARKG) surged 8.34% and was the top perfoming segment with Multi-Theme (ARKK, +7.10%) trailing closely. Disruptive Tech (ARKW, +6.24%) and Biotech (SBIO, +5.97%) were also strong. Cannabis (MJ), Cloud Computing (SKYY), Clean Energy (PBW), and Online Retail (IBUY) all climbed over 4%. The ETFMG Travel Tech ETF (AWAY) was down 1.06% yesterday as recession fears pushed travel and hospitality names lower. Meanwhile, the KraneShares MSCI China Clean Technology ETF (KGRN) added another 2.92% and entered overbought territory.
Commodities & Yields: The U.S. 10-Year Treasury Yield dropped on Thursday, finishing at 3.091%. The U.S. Dollar (UUP) was up just 11 bps, U.S. Aggregate Bonds (AGG) rose 42 bps, and 20+ Year Treasury Bonds (TLT) increased 82 bps. Broad Commodities (DJP) were battered falling 3.39%. All commodities were the in the red with Natural Gas (UNG) falling 8.06%, Tin (JJT) decreasing 8.58%, and Cotton (BAL) declining 11.15%.
Daily Note
6.23.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: After Fed Chairman Jerome Powell stated that the Federal Reserve was "strongly committed" to lowering inflation and that a recession was a possibility, U.S. markets posted modest losses. The Dow Jones Industrial Average (DIA) fell 22 bps, the S&P 500 (SPY) dropped 18 bps, and the NASDAQ 100 (QQQ) dipped just 15 bps. U.S. Factor strategies were mixed yesterday with S&P 500 Minimum Volatility (SPMV, +2.90%) handily outperforming. S&P 500 Quality (SPHQ) and S&P 500 Pure Value (RPV) lagged, but declined just 79 bps and 64 bps, respectively. Emerging Markets (EEM, -1.79%) underperformed on weakness from Taiwain (EWT, -2.20%), India (INDA, -1.72%), and China (MCHI, -1.55%) while Developed ex-U.S. Markets (EFA, -67 bps) were dragged by South Korea (EWY, -2.95%).
Sectors: U.S. Sectors were also mixed on Wednesday as Energy (XLE, -4.00%) reversed course from Tuesday's healthy gains. Oil & Gas Equipment & Services (XES, -6.23%) and Oil & Gas Exploration & Production (XOP, -5.99%) dragged down XLE. Materials (XLB) also declined 1.28% on the day while Real Estate (XLRE, +1.62%), Health Care (XLV, +1.39%), and Utilities (XLU, +1.05%) outperformed other sectors. Metals & Mining (XME) fell 3.83%, pulling XLB lower. XLB currently sits at 52-Week Lows and is the only sector that remains in oversold territory. Biotech (XBI, +2.51%) was the top performing industry on the day and has gathered $569 million in net inflows over the past week.
Themes: Advanced Materials (REMX) dropped another 4.16% yesterday and was the worst performing thematic segment for the second consecutive session. REMX is down over 18% thus far in June and currently sits at 52-Week Lows. Blockchain (BLOK, -2.23%) and Cannabis (MJ) were also weak. MJ is the only other thematic segment sitting at 52-Week Lows. Genomics (ARKG) jumped 2.85% and outpaced other segments. Just 29.79% of ARKG's holdings are currently trading above relative 50-Day Moving Averages and the fund is down nearly 50% year-to-date. Biotech (SBIO, +1.95%), Digital Infrastructure (SRVR, +1.83%), and Multi-Theme (ARKK, +1.51%) all had solid outings.
Commodities & Yields: The U.S. 10-Year Treasury Yield was relatively flat yesterday finishing at 3.149%. U.S. Aggregate Bonds (AGG) rose 85 bps, 20+ Year Treasury Bonds (TLT) surged 2.75%, and the U.S. Dollar (UUP) dropped 14 bps. Broad Commodities (DJP) decreased 1.56% as WTI Crude Oil (USO) fell 3.77%, Lead (LD) dropped 8.18%, and Nickel (JJN) declined 5.76%.
Daily Note
6.22.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: U.S. markets bounced back on Tuesday following dismal performance last week. The S&P 500 (SPY) and the NASDAQ 100 (QQQ) each climbed 2.52% while the Dow Jones Industrial Average (DIA) gained 2.20%. Federal Reserve Chairman Jerome Powell is slated to speak twice this week which should provide further insight into the central bank’s rate policy following the 75 bps rate hike last week. Large-cap, growth-oriented names were strong as S&P 500 Growth (SPYG) rose 2.66%. S&P 500 Momentum (SPMO, +3.32%) was the best performing U.S. Factor strategy on the day as all factors gained over 1.70%. China (MCHI) increased 2.69% providing a boost for Emerging Markets (EEM, +1.61%) and Developed ex-U.S. Markets (EFA, +1.51%) were lifted by Canada (EWC), the U.K. (EWU), and Australia (EWA) which all climbed over 2.25% on Tuesday.
Sectors: All U.S. Sectors posted gains yesterday led by Energy (XLE), which surged +5.12%. XLE was aided by strong outings from Oil & Gas Equipment & Services (XES, +4.08%) and Oil & Gas Exploration & Production (XOP, +3.98%). Over the past 3 months, XLE has gained 1.48%, but has seen over $2.6 billion in net outflows. Consumer Discretionary (XLY), Health Care (XLV), Consumer Staples (XLP), and Technology (XLK) were all up over 2.5% while Financials (XLP) increased 1.98%. Utilities (XLU) and Materials (XLB) added 1.89% and 1.50%, respectively, and are the only sectors still in oversold territory. All industries were higher yesterday with Biotech (XBI, +3.58%) strong once again. XBI is trading relatively in line with its 50-Day Moving Average, but is signifcantly below its 200-Day Moving Average.
Themes: Advanced Materials (REMX) was the lone thematic segment in negative territory on Tuesday, losing 2.32%, while the majority of other segments added over 2%. Disruptive Tech (ARKW) was the top performer rising 5.45% followed by Multi-Theme (ARKK, +4.38%), Blockchain (BLOK, +4.00%), and Biotech (SBIO, +3.38%). Genomics (ARKG), NextGen Transportation (DRIV), and eSports & Video Games (ESPO) were also all up around 3% on the day. The KraneShares MSCI China Clean Technology Index ETF (KGRN) was one of the top performing thematic ETFs on the day, adding another 4.17%. KGRN is up 14.77% over the past month and is approaching overbought territory. Meanwhile, the AdvisorShares Pure US Cannabis ETF (MSOS) was the worst performer on the day, declining 2.50%. MSOS is down 55.72% year-to-date and sits at 52-Week lows.
Commodities & Yields: The U.S. Dollar (UUP) fell 36 bps, U.S. Aggregate Bonds (AGG) dropped 40 bps, and 20+ Year Treasury Bonds (TLT) declined 1.70% as the U.S. 10-Year Treasury Yield rose slightly, finishing at 3.307%. Broad Commodities (DJP) closed down 61 bps as Natural Gas (UNG) decreased 2.03%, Wheat (WEAT) dropped 5.38%, Cotton (BAL) fell 4.16%, and Tin (JJT) plunged 7.57%.
Daily Note
6.20.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: On Friday, U.S. markets were mixed in a volatile session amid lingering recession fears. The NASDAQ 100 (QQQ) increased 1.22% and the S&P 500 (SPY) gained 21 bps while the Dow Jones Industrial Average (DIA) declined 16 bps. Last week, SPY posted its worst weekly performnce since 2020, falling 5.74% while QQQ and DIA dropped 4.90% and 4.76%, respectively. Growth-oriented pockets of the markets were strong as S&P 500 High Beta (SPHB, +1.78%) and S&P 500 Growth (SPYG, +73 bps) outpaced other U.S. Factor strategies. All factors were down last week with SPHB falling 8.38%. Developed ex-U.S. Markets (EFA) dipped 40 bps and Emerging Markets (EEM, +35 bps) benefitted from China (MCHI) which surged 1.73% on the day.
Sectors: AEnergy (XLE) plunged 5.47% on Friday as Oil & Gas Exploration & Production (XOP, -7.28%) and Oil & Gas Equipment & Services (XES, -4.44%) lagged. Communication Services (XLC, +1.43%) and Consumer Discretionary (XLY, +1.04%) were the top performing U.S. Sectors on the day while Technology (XLK) also rose 92 bps. Utilities (XLU) was also down 93 bps. Currently, Financials (XLF), Health Care (XLV), Materials (XLB), Consumer Staples, XLE, and XLU all sit in oversold territory. On the industry level, Biotech (XBI) jumped 5.69% and handily outpaced other industries. Last week, all sectors were lower by over 4% with XLE dropping 17.16% and XLU falling 9.07%.
Themes: Excellent day for global thematics on Friday with all segments in the green, led by Solar (TAN, +5.92%), Clean Energy (PBW, +5.76%), and Biotech (SBIO, +5.73%). Genomics (ARKG) also climbed over 5% followed by Multi-Theme (ARKK, +4.92%) and Online Retail (IBUY, +4.43%). Water (PHO) was one of the worst performing segments rising just 23 bps. PHO and several other Water ETFs (PIO, CGW, FIW) currently reside in oversold territory. Biotech (SBIO) was the only thematic segment to post gains last week as it added 99 bps. Blockchain (BLOK) was the worst performing segment on the week, declining 11.31% as the price of Bitcoin continued to tumble. BLOK is down nearly 54% year-to-date.
Commodities & Yields: The U.S. 10-Year Treasury Yield fell for the third straight day on Friday, finishing at 3.229%. The U.S. Dollar (UUP) jumped 1.01%, U.S. Aggregate Bonds (AGG) were relatively flat, and 20+ Year Treasury Bonds (TLT) rose 32 bps. Broad Commodities (DJP) finished down 2.90% as Natural Gas (UNG) and WTI Crude Oil (USO) decreased 6.29% and 4.93%, respectively.
Daily Note
6.17.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: U.S. markets were battered the day after the Federal Reserve raised interest rates by 75 basis points with the NASDAQ 100 (QQQ) plunging 4.03%, the S&P 500 (SPY) dropping 3.31%, and the Dow Jones Industrial Average (DIA) declining 2.39%. Investors were shaken by housing starts falling 14% month-over-month in May as well as a negative reading from the Philadelphia Fed Business Index, the negative reading first since May 2020. Small-Caps (IJR) and Mid-Caps (IJH) also plummeted 4.91% and 4.88%, respectively. All U.S. Factor strategies were deep in the red with S&P 500 High Beta (SPHB) falling nearly 6% and S&P 500 Pure Growth (RPG) sinking nearly 5%. S&P 500 Low Volatility (SPLV) declined 1.49% and was the top performing factor. Developed ex-U.S. Markets (EFA) were down 2.20% while Emerging Markets (EEM) dipped 3.07%.
Sectors: All U.S. Sectors posted losses on Thursday with Energy (XLE, -5.63%), Consumer Discretionary (XLY, -4.90%), and Technology (XLK, -4.07%) hit the hardest. Oil & Gas Exploration & Production (XOP) dropped another 6.35%, dragging on XLE. Semiconductors (XSD, -6.59%) and Internet (XWEB, -5.90%) impacted XLK’s performance. Communication Services (XLC), Materials (XLB), and Industrials (XLI) all declined over 3% while Financials (XLF) and Real Estate (XLRE) both dipped around 2.50%. Consumer Staples (XLP) outpaced other sectors falling just 76 bps. All sectors are now trading at 52-Week Lows except for Utilities (XLU), XLP, and XLE. Homebuilders (XHB) declined 6.61% and was the worst performing industry on the day after weak housing starts data.
Themes: Thursday was a dismal day for themes with all thematic segments losing over 2% and the majority of segments falling over 4%. Disruptive Tech (ARKG) was particularly weak falling 7.40% followed by Clean Energy (PBW), Online Retail (IBUY), and Multi-Theme (ARKK), which all declined over 6%. Solar (TAN) declined 5.67% on the day, but is the only thematic segment to post gains over the past month, rising 9.01%. In the past 1-year period, Advanced Materials (REMX) is the only segment in the green, up 16.35%. Several Cannabis ETFs (YOLO, POTX, MJ) and Blockchain ETFs (BKCH, BLOK, BITQ) remain in oversold territory. Only one thematic ETF saw positive performance on Thursday: the KraneShares SSE STAR Market 50 Index ETF (KSTR, +56 bps).
Commodities & Yields: Broad Commodities (DJP) finished down just 20 bps as Agriculture (DBA) rose 1.01% and Energy (DBE) was up 24 bps. Wheat (WEAT) was up 2.60%, Gasoline (UGA) rose 93 bps, and Gold (GLD) climbed 1.12%. U.S. Aggregate Bonds (AGG) increased 24 bps, TIPS Bonds (TIP) fell 30 bps, and the U.S. Dollar (UUP) dipped 97 bps. The U.S. 10-Year Treasury Yield also declined finishing at 3.25%.
Daily Note
6.16.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: Major averages posted solid gains on Wednesday after the Federal Reserve raised interest rates by 75 basis points (bps), the highest rate increase since 1994. The rate hike indicates the central bank will continue to aggressively battle inflation, boosting investor sentiment. Further, Fed Chairman Powell indicated another 50 bps or 75 bps rate increase in the next meeting and the Federal Open Market Committee stated it was “strongly committed to returning inflation to its 2% objective.” The NASDAQ 100 (QQQ) climbed 2.50%, the S&P 500 (SPY) gained 1.43%, and the Dow Jones Industrial Average (DIA) added 96 bps. All U.S. Factor strategies were in the green led by S&P 500 High Beta (SPHB, +2.34%) and S&P 500 Growth (SPYG, +2.26%). Developed ex-U.S. Markets (EFA) rose 1.87% as Netherlands (EWN) jumped 2.91% and Emerging Markets (EEM, +1.32%) benefitted from South Africa (EZA) which gained 4.54%.
Sectors: All U.S. Sectors were higher yesterday except for Energy (XLE), which sunk 2.21% on weakness from Oil & Gas Exploration & Production (XOP, -1.48%), and Materials (XLB), which was down just 3 bps. XLE is now trading in line with its 50-Day Moving Average while XLB sits at 52-Week Lows. Consumer Discretionary (XLY, +2.81%) led the charge while Real Estate (XLRE), Communication Services (XLC), and Technology (XLK) all gained over 2% as well. Financials (XLF) and Health Care (XLV) also added 1.12% and 1.01%, respectively. Internet (XWEB) surged 4.43% and was the best performing industry on the day.
Themes: All thematic segments were in positive territory on Wednesday with the majority of segments rising over 2.00%. Multi-Theme (ARKK) jumped 6.57% and Disruptive Tech (ARKW) gained 6.21% followed by Genomics (ARKG) which climbed 5.23%. Online Retail (IBUY, +4.12%) and Clean Energy (PBW, +3.83%) were also strong. Blockchain (BLOK) added 1.37%, but remains in oversold territory. Only one thematic ETF was negative yesterday: the Global X Data Center REITs & Digital Infrastructure ETF (VPN) which dropped just 7 bps.
Commodities & Yields: Following the interest rate hike, the U.S. 10-Year Treasury Yield declined, finishing at 3.312%. U.S. Aggregate Bonds (AGG) rose 1.11%, 20+ Year Treasury Bonds (TLT) jumped 1.87%, and the U.S. Dollar (UUP) fell 78 bps. Broad Commodities (DJP) finished up 1.38% despite losses from Energy (DBE, -47 bps). Gasoline (UGA) decreased 3.21%, Natural Gas (UNG, +2.95%) recovered slightly, and Aluminum (JJU) rose 5.41%.
Daily Note
6.15.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: Ahead of Wednesday's Federal Reserve announcement, U.S. markets were mixed on Tuesday as yields continued to surge and mortgage rates jumped above 6.25%. Amid continued market turmoil and inflationary pressures, many experts now believe the Fed will raise interest rates by 75 bps instead of 50 bps. In May, Fed Chairman Powell stated the 75 bps hike was not something the central bank was actively considering. The NASDAQ 100 (QQQ) gained 18 bps while the Dow Jones Industrial Average (DIA) and the S&P 500 (SPY) declined 42 bps and 30 bps, respectively. Growth-oriented pockets of the markets recovered slightly as S&P 500 Pure Growth (RPG) added 42 bps and led U.S. Factor strategies. S&P 500 Pure Value (RPV) rose 9 bps while S&P 500 Low Volatility (SPLV) lagged, falling 1.43%. Emerging Markets (EEM) jumped 1.39% yesterday on strength from China (MCHI, +3.17%). Developed ex-U.S. Markets (EFA) dipped 94 bps as the U.K. (EWU) and Switzerland (EWL) each fell over 1.50%.
Sectors: Technology (XLK, +63 bps) and Energy (XLE, +19 bps) were the only U.S. Sectors to post gains yesterday. Utilities (XLU) underperformed, sinking 2.53%, followed by Consumer Staples (XLP, -1.18%), Health Care (XLV, -95 bps), and Financials (XLF, -86 bps). XLF is in oversold territory joining XLU and XLV. Healthcare Equipment (XHE) fell 2.42% and was the worst performing industry, dragging XLV lower. Materials (XLB) and Real Estate (XLRE) were also down just over 70 bps. Retail (XRT, +79 bps), Semiconductors (XSD, +75 bps), and Regional Banks (KRE, +74 bps) were the best performing industries.
Themes: Thematic segments were split on Tuesday with Evolving Consumer (SOCL, +1.53%) and Genomics (ARKG, +1.29%) outperforming. After plunging nearly 9% on Monday, Multi-Theme (ARKK) climbed 1.12%. Clean Energy (PBW, -2.45%) and Digital Infrastructure (SRVR, -1.88%) lagged. The KraneShares CSI China Internet ETF (KWEB) jumped 6.66% yesterday, outpacing all other thematic ETFs. KWEB has risen nearly 18% over the past month and 75% of the fund's holdings are trading above relative 50-Day Moving Averages. KWEB has also gathered $470 million in net inflows over the past week. The AdvisorShares Pure US Cannabis ETF (MSOS) continues to lag, declining another 3.63% on the day.
Commodities & Yields: The U.S. 10-Year Treasury Yield surged above 3.40% intraday, its highest levels since April 2011, and finished above 3.37%. The U.S. Dollar (UUP) rose another 21 bps, U.S. Aggregate Bonds (AGG) dropped 59 bps, and 20+ Year Treasury Bonds (TLT) fell 1.26%. Broad Commodities (DJP) decreased 3.36% on the day on weakness from Industrial Metals (DBB, -1.70%) and Energy (DBE, -1.11%). Natural Gas (UNG) plummeted 15.95% after Freeport LNG said its facility had a fire last week which will keep it closed until further notice. Tin (JJT) also lost another 6.00% on Tuesday.
Daily Note
6.14.2022
Breakdown of the previous day's market action through the lens of ETFs:
Equities: Recessionary fears continued to plague markets on Monday as major averages fell sharply for the second consecutive session. The looming Federal Reserve announcement on Wednesday and the U.S. 10-Year Treasury Yield rising above 3.40% intraday rattled investors. The selloff was broad with the NASDAQ 100 (QQQ) declined 4.65%, the S&P 500 (SPY) down 3.80%, and the Dow Jones Industrial Average (DIA) dropping 2.80%. QQQ, SPY, and DIA now sit at 52-Week Lows. Small-Caps (IJR, -4.42%) and Mid-Caps (IJH, -4.54%) were also hit hard. Growth-oriented pockets of the market were slammed as S&P 500 High Beta (SPHB, -6.55%) and S&P 500 Pure Growth (RPG, -5.43%) were the worst performing U.S. Factors on the day. All factors were down sharply with S&P 500 Pure Value (RPV) and S&P 500 High Dividend (SPYD) both sinking over 4%. Emerging Markets (EEM, -3.50%) were pulled lower by China (MCHI, -4.30) and Developed ex-U.S. Markets (EFA) fell 3.31%.
Sectors: A sea of red for U.S. Sectors yesterday. Energy (XLE) dropped 5.22% while Real Estate (XLRE), Communication Services (XLC), Consumer Discretionary (XLY), Utilities (XLU), and Technology (XLK) all lost over 4%. XLE and XLU are the only sectors not trading at 52-Week Lows. XLU and XLRE fell into oversold territory. Oil & Gas Equipment & Services (XES) plummeted 8.32% dragging on XLE’s performance. Internet (XWEB), Semiconductors (XSD), and Software & Services (XSW) all declined over 6%, impacting XLK. Materials (XLB) fell 3.91% as Metals & Mining (XME) plunged 7.03% and Health Care (XLV) and Industrials (XLI) were both down around 3%.
Themes: The carnage in global thematics continued on Monday as all segments dropped sharply with most segments declining more than 5%. Disruptive Tech (ARKW) was the worst performer as it dove 9.59%. Multi-Theme (ARKK) and Blockchain (BLOK) weren't far behind, falling 8.80% and 8.77%, respectively. BLOK entered oversold territory. Genomics (ARKG) and Casinos & Gaming (BETZ) both dropped over 7.75%. All 240 thematic ETFs declined over 2.50% yesterday and 97 of the 154 thematic ETFs that were launched more than a year ago are at 52-Week lows. The worst performer yesterday was the Bitwise Crypto Industry Innovators ETF (BITQ) which plunged 14.79%.
Commodities & Yields: U.S. Aggregate Bonds (AGG) decreased 1.64%, 20+ Year Treasury Bonds (TLT) dropped 3.14%, and the U.S. Dollar (UUP) rose 97 bps as the U.S. 10-Year Treasury Yield shot up above 3.40% intraday before finishing above 3.37%. Broad Commodities (DJP) fell 2.35% as all broader sectors were negative. Gasoline (UGA) dipped 3.60%, WTI Crude Oil (USO) was up 26 bps, Nickel (JJN) plunged 6.20%, Gold (GLD) lost 2.64%, and Tin (JJT) declined 7.59%.