Macro Overview
Global equity markets presented a mixed and cautious picture, with U.S. stocks showing significant internal rotation. The S&P 500 (IVV) ended the day nearly flat with a 0.03% gain, masking deep divergences beneath the surface, as investors digested weaker-than-expected ADP private payrolls and ISM Manufacturing data. International markets fared worse, with Developed ex-U.S. (EFA) falling 0.83% and Emerging Markets (EEM) posting a significant 2.82% loss. The cautious tone extended to other asset classes, with both the U.S. Aggregate Bond (AGG) and Broad Commodities (DJP) finishing in negative territory.
U.S. Size & Style
A distinct value-over-growth rotation characterized the U.S. equity style box on Wednesday. Large Cap Value (IVE) posted a 0.32% gain, while its Large Cap Growth (IVW) counterpart fell by 0.47%. This trend was more pronounced down the capitalization spectrum, with Mid and Small-Cap Growth ETFs experiencing steeper declines of 1.22% and 0.76%, respectively. Despite the daily pullback, small-cap momentum remains strong, with the Small Growth (IJT) fund entering overbought territory with an RSI of 71.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Large Value (IVE) | 0.32% | 0.87% | 8.13% | 8.23% | 17.38% |
| Large Cap (IVV) | 0.03% | -1.44% | 14.13% | 9.95% | 22.13% |
| Large Growth (IVW) | -0.47% | -3.24% | 19.54% | 11.25% | 26.11% |
| Mid Value (IJJ) | -0.64% | 3.89% | 10.63% | 12.31% | 18.76% |
| Mid Cap (IJH) | -0.87% | 2.80% | 12.53% | 16.37% | 23.33% |
| Mid Growth (IJK) | -1.22% | 1.80% | 14.22% | 20.07% | 27.49% |
| Small Value (IJS) | -0.13% | 4.70% | 15.49% | 20.72% | 36.01% |
| Small Cap (IJR) | -0.52% | 6.88% | 18.46% | 23.33% | 34.71% |
| Small Growth (IJT) | -0.76% | 9.27% | 21.51% | 25.94% | 33.48% |
Explore the U.S. Size & Style Explorer →
U.S. Sectors & Industries
U.S. sectors experienced a dramatic divergence, driven by a sharp selloff in semiconductors and a surge in select mega-cap names. The Technology (XLK) sector was the session’s worst performer by a wide margin, dropping 2.57%. In stark contrast, Communication Services (XLC) led all sectors with a 2.44% advance, buoyed by news-driven strength in platform companies. Financials (XLF) also had a robust session, climbing 2.18% and pushing its RSI to 69, just shy of the overbought threshold.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| S&P 500 (SPY) | -0.14% | -1.43% | 14.10% | 9.94% | 22.08% |
| Communication Services (XLC) | 2.44% | -4.83% | -1.09% | -6.24% | 3.12% |
| Financials (XLF) | 2.18% | 6.88% | 11.19% | 0.88% | 5.63% |
| Consumer Discretionary (XLY) | 0.69% | 0.12% | 7.77% | -0.71% | 9.05% |
| Health Care (XLV) | 0.55% | 8.39% | 8.47% | 3.94% | 18.73% |
| Materials (XLB) | 0.37% | 0.57% | 1.49% | 13.42% | 15.33% |
| Real Estate (XLRE) | 0.34% | 2.99% | 8.82% | 11.18% | 9.57% |
| Consumer Staples (XLP) | 0.28% | 2.26% | 2.97% | 8.59% | 4.44% |
| Energy (XLE) | -0.56% | -7.18% | -9.81% | 19.73% | 27.41% |
| Industrials (XLI) | -1.01% | 6.62% | 11.78% | 18.82% | 25.47% |
| Utilities (XLU) | -1.26% | 4.54% | -2.29% | 6.27% | 12.30% |
| Technology (XLK) | -2.57% | -5.07% | 37.75% | 29.24% | 48.69% |
Explore the U.S. Sectors & Industries Explorer →
Global Thematic
Thematic ETFs reflected the day’s intense rotation out of semiconductor and AI-related industries and into software and internet platforms. The laggards list was dominated by chip-focused funds, with the Roundhill Memory ETF (DRAM) plunging 10.82% and the Corgi Lithography & Semiconductor Photonics ETF (EUV) falling 7.88%. Conversely, themes centered on cloud computing and social media outperformed, evidenced by a 3.54% gain for the WisdomTree Cloud Computing Fund (WCLD) and a 3.38% rise in the Global X Social Media ETF (SOCL).
| Name (Ticker) | 1-Day |
|---|---|
| Leaders | |
| WisdomTree Cloud Computing Fund (WCLD) | 3.54% |
| ARK Blockchain & Fintech Innovation ETF (ARKF) | 3.50% |
| ALPS O'Shares Global Internet Giants ETF (OGIG) | 3.39% |
| Global X Social Media ETF (SOCL) | 3.38% |
| First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) | 3.26% |
| Laggards | |
| Roundhill Memory ETF (DRAM) | -10.82% |
| Corgi Lithography & Semiconductor Photonics ETF (EUV) | -7.88% |
| VistaShares Artificial Intelligence Supercycle ETF (AIS) | -6.82% |
| CoinShares Bitcoin Mining ETF (WGMI) | -6.82% |
| iShares A.I. Innovation and Tech Active ETF (BAI) | -6.13% |
Explore the Thematic Explorer →
Developed ex-U.S. & Emerging Markets
International markets saw broad declines, with a notable selloff in key Asian technology hubs. South Korea (EWY) was a significant outlier, plummeting 8.12% amid the global rout in semiconductor stocks. This weakness contributed to the 2.82% drop in the broader Emerging Markets (EEM) index, which was also weighed down by a 2.69% loss in Taiwan (EWT). Bucking the regional trend, China (MCHI) managed to close higher, gaining 0.98%.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Developed Markets ex-U.S. | |||||
| Developed ex-U.S. (EFA) | -0.83% | 0.19% | 6.11% | 8.97% | 19.39% |
| Australia (EWA) | -1.63% | -3.56% | 0.01% | 7.26% | 8.44% |
| Canada (EWC) | 0.05% | -1.31% | 5.00% | 7.43% | 26.56% |
| France (EWQ) | -1.03% | 0.46% | 4.97% | 2.31% | 7.91% |
| Germany (EWG) | -0.39% | -3.34% | 4.55% | -1.11% | 0.05% |
| Hong Kong (EWH) | 0.67% | -7.01% | -7.97% | 0.69% | 10.95% |
| Japan (EWJ) | -0.24% | 0.66% | 8.17% | 15.86% | 30.46% |
| Netherlands (EWN) | -2.90% | 2.22% | 17.74% | 20.92% | 32.42% |
| South Korea (EWY) | -8.12% | -14.40% | 46.97% | 90.80% | 164.83% |
| Switzerland (EWL) | -0.56% | 2.61% | 6.90% | 6.08% | 15.69% |
| U.K. (EWU) | -0.43% | -0.19% | 0.54% | 5.96% | 19.21% |
| Emerging Markets | |||||
| Emerging Markets (EEM) | -2.82% | -4.66% | 16.75% | 22.12% | 40.24% |
| Brazil (EWZ) | -0.93% | -3.26% | -10.07% | 8.61% | 24.16% |
| China (MCHI) | 0.98% | -6.38% | -7.39% | -13.66% | -5.01% |
| India (INDA) | -0.36% | 2.54% | 5.35% | -8.95% | -11.87% |
| Indonesia (EIDO) | -0.27% | -10.64% | -27.24% | -38.60% | -33.71% |
| Malaysia (EWM) | -1.08% | -4.93% | -5.03% | -0.55% | 13.38% |
| Mexico (EWW) | 0.00% | -1.92% | 0.00% | 10.16% | 27.38% |
| South Africa (EZA) | -0.73% | -5.27% | -6.92% | -6.89% | 24.66% |
| Taiwan (EWT) | -2.69% | -0.69% | 47.36% | 66.36% | 92.01% |
| Thailand (THD) | -1.55% | -1.16% | 5.74% | 22.10% | 43.20% |
Explore the Global (ex-U.S.) Size & Style Explorer →
Fixed Income
Fixed income markets broadly weakened as Treasury yields ticked higher in response to economic data and hawkish commentary from the Federal Reserve. The core U.S. Aggregate Bond (AGG) index declined by 0.15%, with longer-duration funds like the Long-Term Treasury (SPTL) seeing a more pronounced drop of 0.57%. Convertible bonds (CWB), which have high sensitivity to growth equities, fell sharply by 1.74%, reflecting the concurrent selloff in the technology sector. In contrast, High Yield Municipal Bonds (HYD) showed resilience, gaining 0.37%.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Multisector | |||||
| Short-Term (BSV) | -0.04% | 0.09% | 0.32% | 0.47% | 3.08% |
| Core Enhanced (IUSB) | -0.14% | 0.12% | 0.67% | 0.74% | 3.97% |
| Core (AGG) | -0.15% | 0.15% | 0.50% | 0.59% | 3.73% |
| Long-Term (BLV) | -0.45% | 0.22% | 0.98% | 0.68% | 3.24% |
| Government | |||||
| Ultrashort (BIL) | 0.03% | 0.29% | 0.89% | 1.77% | 3.84% |
| Short-Term (SPTS) | -0.07% | 0.06% | 0.29% | 0.58% | 2.96% |
| Intermediate (SPTI) | -0.14% | 0.14% | -0.02% | -0.13% | 2.57% |
| Inflation Protected (TIP) | -0.18% | -0.68% | 0.63% | 1.04% | 3.09% |
| Long-Term (SPTL) | -0.57% | 0.46% | 0.36% | 0.24% | 2.17% |
| Specialty | |||||
| Preferred Stock (PFF) | 0.40% | -2.51% | 1.66% | 0.89% | 4.84% |
| High Yield (HYG) | -0.01% | 0.15% | 1.79% | 1.67% | 5.26% |
| Bank Loans (BKLN) | -0.05% | -0.24% | 1.06% | -0.03% | 3.77% |
| Corporate (SPIB) | -0.07% | 0.11% | 0.74% | 0.72% | 4.11% |
| Mortgage Backed (MBB) | -0.17% | 0.04% | 0.38% | 0.84% | 4.95% |
| Convertible (CWB) | -1.74% | -3.19% | 14.87% | 19.51% | 30.68% |
| International & EM | |||||
| Emerging USD (EMB) | -0.02% | 0.43% | 3.61% | 2.35% | 9.33% |
| International USD (BNDX) | -0.10% | 0.56% | 1.25% | 1.27% | 2.04% |
| Emerging Local (EMLC) | -0.26% | -0.06% | 2.63% | 1.30% | 6.94% |
| International Local (IGOV) | -0.32% | -2.08% | -0.64% | -1.82% | -3.96% |
| Municipals | |||||
| High Yield (HYD) | 0.37% | 0.88% | 3.30% | 2.94% | 7.43% |
| Intermediate (MUB) | 0.01% | 0.64% | 1.78% | 1.82% | 6.26% |
| Short-Term (SUB) | 0.00% | 0.13% | 0.51% | 0.85% | 2.63% |
| Long-Term (MLN) | -0.01% | 1.22% | 2.36% | 2.98% | 9.27% |
Explore the related Explorers: Taxable → · Municipal → · Specialty →
Commodities
The commodities complex delivered a mixed performance, with weakness in energy offset by gains in precious metals and agriculture. Energy prices retreated, as WTI Crude (USO) fell 2.98% and Brent Crude (BNO) declined 3.15%. Conversely, precious metals found a bid, with Gold (GLD) rising 0.60% and Platinum (PPLT) adding 1.13%. Agricultural commodities also advanced, led by a 1.68% increase for Wheat (WEAT).
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Broad Commodities (DJP) | -0.43% | -11.06% | -8.61% | 15.71% | 27.92% |
| Agriculture | |||||
| Wheat (WEAT) | 1.68% | -3.90% | -1.88% | 12.17% | -1.10% |
| Corn (CORN) | 1.19% | -5.31% | -6.77% | -4.40% | -3.58% |
| Broad (DBA) | 0.71% | -1.40% | -0.89% | 5.25% | 8.47% |
| Sugar (CANE) | 0.61% | 0.92% | -4.18% | 0.97% | -7.86% |
| Soybeans (SOYB) | 0.49% | -2.47% | 0.74% | 12.17% | 12.53% |
| Energy | |||||
| Natural Gas (UNG) | -1.71% | -0.17% | 0.88% | -6.04% | -23.76% |
| Broad (DBE) | -1.93% | -17.32% | -10.62% | 47.23% | 41.75% |
| WTI Crude (USO) | -2.98% | -23.79% | -16.78% | 49.32% | 39.69% |
| Brent Crude (BNO) | -3.15% | -24.92% | -21.70% | 39.16% | 33.55% |
| Industrial Metals | |||||
| Broad (DBB) | -0.66% | -9.35% | 0.84% | 4.36% | 27.21% |
| Copper (CPER) | -1.38% | -6.88% | 8.36% | 6.44% | 17.87% |
| Precious Metals | |||||
| Platinum (PPLT) | 1.13% | -18.11% | -19.92% | -23.35% | 15.69% |
| Gold (GLD) | 0.60% | -9.89% | -15.35% | -6.49% | 20.50% |
| Broad (DBP) | 0.55% | -12.55% | -16.53% | -9.56% | 25.70% |
| Silver (SLV) | 0.21% | -20.82% | -21.37% | -16.83% | 63.70% |
| Palladium (PALL) | -0.23% | -11.24% | -18.20% | -24.23% | 8.89% |
Explore the Commodities Explorer →
Cryptocurrency
Digital assets moved higher, bucking the negative sentiment seen in the technology and semiconductor sectors. Solana (SOLZ) was the day’s standout performer, rallying 4.61%. The two largest assets, Bitcoin (IBIT) and Ethereum (ETHA), also posted solid gains of 2.13% and 2.52%, respectively. This positive performance provided a pocket of strength in an otherwise cautious risk asset environment.
| Name (Ticker) | 1-Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| XRP (XRP) | 1.54% | -18.51% | -21.64% | -42.30% | — |
| Bitcoin (IBIT) | 2.13% | -16.03% | -12.01% | -31.52% | -43.18% |
| Multi-Coin (NCIQ) | 2.26% | -16.16% | -13.94% | -34.28% | -44.15% |
| Ethereum (ETHA) | 2.52% | -19.32% | -24.57% | -45.65% | -32.99% |
| Solana (SOLZ) | 4.61% | -5.04% | -8.37% | -38.71% | -51.24% |
Explore the Digital Assets Explorer →
What to Watch Today
Investors will be closely watching a slate of key economic data on Thursday for further insight into the state of the U.S. labor market and economy. The main event will be the June Employment Situation report at 8:30 AM ET, which includes the closely watched Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings figures. Also on the docket are the weekly Initial Jobless Claims report and Factory Orders for May. On the corporate front, Tesla (TSLA) is expected to release its closely followed Q2 vehicle delivery numbers.
