Small Caps and Commodities Advance as Consumer Data Weighs on Major Indices

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Macro Overview

U.S. equities retreated from recent highs as weaker-than-expected retail sales and consumer sentiment data raised concerns about economic momentum. The S&P 500 (IVV) edged down 0.18%, with similar modest declines for Developed ex-U.S. (EFA) and Emerging Markets (EEM). In contrast, the commodities complex was a clear outlier, as Broad Commodities (DJP) gained 0.91%, buoyed by rising energy prices. Fixed income markets also saw broad-based declines, with the U.S. Aggregate Bond (AGG) falling 0.21%.

U.S. Size & Style

A distinct divergence emerged across the U.S. market cap spectrum, with smaller companies outperforming their larger counterparts. Small Cap Growth (IJT) led the advance with a 0.63% gain, while Large Cap Growth (IVW) was the day’s laggard, falling 0.39%. This trend was consistent across styles, as value-oriented strategies generally held up better than growth. Notably, Large Value (IVE) finished slightly positive and now shows an RSI of 70, signaling potentially overbought conditions.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) 0.03% 3.54% 6.16% 13.13% 19.81%
Large Cap (IVV) -0.18% 3.30% 4.06% 14.49% 21.79%
Large Growth (IVW) -0.39% 2.97% 2.30% 15.39% 23.10%
Mid Value (IJJ) 0.26% 3.33% 8.84% 16.05% 21.31%
Mid Cap (IJH) 0.32% 4.10% 7.39% 19.77% 24.78%
Mid Growth (IJK) 0.36% 4.81% 5.99% 23.14% 27.88%
Small Value (IJS) 0.31% 3.90% 10.89% 24.42% 34.33%
Small Cap (IJR) 0.48% 3.48% 10.84% 25.75% 32.36%
Small Growth (IJT) 0.63% 3.02% 10.73% 26.83% 30.15%

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U.S. Sectors & Industries

Energy was the standout sector, with the Energy Select Sector SPDR Fund (XLE) climbing 1.39% as crude oil prices advanced. Defensive sectors also performed well, including Utilities (XLU), which gained 0.61%. On the other end of the spectrum, Health Care (XLV) and Technology (XLK) were the weakest performers, declining 0.60% and 0.40% respectively, weighing on the broader market indices.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.20% 3.26% 4.03% 14.45% 21.70%
Energy (XLE) 1.39% 8.71% 7.37% 40.36% 49.19%
Utilities (XLU) 0.61% -3.02% -0.69% 5.18% 6.06%
Materials (XLB) 0.44% 3.75% 2.06% 16.80% 18.83%
Industrials (XLI) 0.39% 3.36% 7.14% 20.86% 24.99%
Communication Services (XLC) 0.36% 1.35% -3.30% -3.49% 2.85%
Real Estate (XLRE) 0.33% 1.78% 3.99% 13.92% 14.02%
Consumer Staples (XLP) 0.10% 3.20% 2.01% 12.23% 8.06%
Financials (XLF) -0.17% 3.52% 13.79% 7.10% 11.41%
Consumer Discretionary (XLY) -0.21% 1.98% -0.19% -0.62% 3.76%
Technology (XLK) -0.40% 3.48% 5.98% 32.30% 42.68%
Health Care (XLV) -0.60% 5.74% 14.64% 9.04% 27.11%

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Global Thematic

Thematic ETFs displayed a sharp divide between areas of strength and weakness. Defense and modern warfare themes saw significant gains, with the Defiance Drone and Modern Warfare ETF (JEDI) surging 4.39%. In stark contrast, cybersecurity funds experienced a broad sell-off, occupying all five laggard spots for the day. The WisdomTree Cybersecurity Fund (WCBR) led the declines, dropping 3.26% in a clear rotation away from the sub-sector.

Name (Ticker) 1-Day
Leaders
Defiance Drone and Modern Warfare ETF (JEDI) 4.39%
Roundhill Neocloud ETF (NCLD) 3.61%
Global X Video Games & Esports ETF (HERO) 3.33%
VanEck Rare Earth and Strategic Metals ETF (REMX) 3.18%
Roundhill Photonics & Optics ETF (LYTE) 2.87%
Laggards
WisdomTree Cybersecurity Fund (WCBR) -3.26%
Global X Cybersecurity ETF (BUG) -3.08%
Amplify Cybersecurity ETF (HACK) -3.04%
WisdomTree Cloud Computing Fund (WCLD) -2.63%
First Trust NASDAQ Cybersecurity ETF (CIBR) -2.54%

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Developed ex-U.S. & Emerging Markets

International equity performance was mixed and generally subdued. Developed ex-U.S. markets (EFA) closed nearly unchanged, though country-level results varied, with Germany (EWG) rising 0.45% while Switzerland (EWL) fell 0.68%. In the emerging markets space, Indonesia (EIDO) posted a strong 0.96% gain and South Korea (EWY) added 0.63%. Conversely, several Latin American markets retreated, including Mexico (EWW), which declined by 0.58%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) -0.05% 4.50% 6.66% 14.91% 22.59%
Australia (EWA) -0.30% 3.27% 2.70% 14.81% 14.38%
Canada (EWC) 0.21% 5.15% 7.48% 15.93% 33.28%
France (EWQ) 0.21% 5.40% 7.92% 8.02% 12.29%
Germany (EWG) 0.45% 6.69% 6.60% 5.97% 5.97%
Hong Kong (EWH) -0.49% 3.32% -6.85% 7.05% 9.85%
Japan (EWJ) -0.26% 4.60% 7.25% 22.29% 30.04%
Netherlands (EWN) 0.39% 6.15% 10.10% 26.78% 40.85%
South Korea (EWY) 0.63% 1.56% -5.66% 84.88% 149.57%
Switzerland (EWL) -0.68% 1.36% 4.22% 7.39% 19.02%
U.K. (EWU) 0.00% 4.21% 4.99% 11.31% 20.25%
Emerging Markets
Emerging Markets (EEM) -0.10% 1.43% -0.65% 22.36% 36.15%
Brazil (EWZ) 0.47% -5.83% -7.75% 7.82% 27.23%
China (MCHI) 0.39% 2.63% -5.35% -8.46% -6.13%
India (INDA) -0.40% 2.15% 2.94% -7.90% -5.02%
Indonesia (EIDO) 0.96% 4.39% -10.37% -31.41% -30.49%
Malaysia (EWM) -0.57% -0.32% -5.41% 4.45% 15.98%
Mexico (EWW) -0.58% -0.44% -3.66% 9.78% 27.21%
South Africa (EZA) 0.30% 6.43% -2.16% 0.23% 26.21%
Taiwan (EWT) -0.40% 5.09% 12.14% 68.53% 84.67%
Thailand (THD) -0.34% 0.12% 1.81% 24.89% 30.64%

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Fixed Income

It was a broadly negative session for fixed income, with declines seen across most categories as yields held firm. Longer-duration assets were most affected, evidenced by the 0.67% drop in the Long-Term Treasury (SPTL). Core bond funds like the U.S. Aggregate Bond (AGG) were also down 0.21%. A notable exception was the convertible bond space, where the SPDR Bloomberg Convertible Securities ETF (CWB) managed a 0.19% gain against the broader trend.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.08% 0.37% 0.61% 0.83% 2.75%
Core (AGG) -0.21% -0.19% -0.17% -0.10% 2.36%
Core Enhanced (IUSB) -0.24% -0.09% -0.02% 0.15% 2.67%
Long-Term (BLV) -0.59% -1.53% -1.97% -2.53% -0.21%
Government
Ultrashort (BIL) 0.02% 0.32% 0.91% 2.22% 3.78%
Short-Term (SPTS) 0.00% 0.46% 0.78% 1.14% 3.02%
Inflation Protected (TIP) -0.16% -0.22% -0.83% 0.67% 1.86%
Intermediate (SPTI) -0.18% 0.16% 0.10% -0.29% 1.83%
Long-Term (SPTL) -0.67% -1.74% -1.90% -2.95% -0.53%
Specialty
Convertible (CWB) 0.19% 2.57% 0.46% 20.60% 27.02%
Bank Loans (BKLN) 0.00% 1.07% 1.09% 1.54% 4.65%
High Yield (HYG) -0.10% 0.52% 1.29% 2.32% 5.10%
Preferred Stock (PFF) -0.16% 1.55% -1.06% 2.58% 3.45%
Corporate (SPIB) -0.18% 0.14% 0.32% 0.56% 2.94%
Mortgage Backed (MBB) -0.31% -0.14% -0.06% 0.33% 3.89%
International & EM
Emerging Local (EMLC) -0.04% 1.14% 2.31% 2.98% 8.05%
International Local (IGOV) -0.21% 0.99% -0.76% -1.10% -1.17%
Emerging USD (EMB) -0.33% -0.11% 0.76% 1.76% 6.48%
International USD (BNDX) -0.40% -0.25% 0.20% 0.37% 1.17%
Municipals
Short-Term (SUB) -0.05% 0.24% 0.64% 1.10% 2.06%
Intermediate (MUB) -0.28% -0.75% 0.05% 0.69% 5.04%
High Yield (HYD) -0.38% -1.03% 0.31% 1.27% 7.12%
Long-Term (MLN) -0.48% -0.79% 0.49% 1.88% 8.19%

Explore the related Explorers: Taxable → · Municipal → · Specialty →

Commodities

Commodities posted strong gains, serving as a bright spot in the market. The advance was led by energy, with Brent Crude (BNO) rising 1.81%. Agricultural commodities also had a robust session, as Wheat (WEAT) jumped 2.67%. Precious metals were supported by moderating inflation expectations, with Gold (GLD) adding 0.63% and Platinum (PPLT) gaining a solid 2.12%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.91% 4.34% -4.31% 29.25% 45.36%
Agriculture
Wheat (WEAT) 2.67% 4.43% 0.60% 25.04% 18.90%
Corn (CORN) 1.95% 4.40% -1.46% 2.99% 8.88%
Soybeans (SOYB) 0.67% 0.52% 1.64% 16.06% 16.00%
Broad (DBA) 0.54% 0.51% -1.70% 8.82% 8.14%
Sugar (CANE) -0.74% 9.35% 6.53% 10.30% -3.28%
Energy
Brent Crude (BNO) 1.81% 7.08% -9.91% 78.81% 69.82%
WTI Crude (USO) 1.26% 5.35% -11.47% 83.05% 71.68%
Broad (DBE) 0.67% 6.38% -3.23% 79.85% 74.44%
Natural Gas (UNG) -0.50% -5.70% -11.11% -19.09% -20.70%
Industrial Metals
Broad (DBB) 0.47% 3.25% -2.90% 10.81% 32.22%
Copper (CPER) 0.40% 3.81% -0.03% 14.45% 42.94%
Precious Metals
Platinum (PPLT) 2.12% 7.37% -15.04% -14.87% 28.21%
Broad (DBP) 0.64% 8.07% -10.18% -1.90% 35.21%
Gold (GLD) 0.63% 7.88% -6.02% 1.30% 30.67%
Silver (SLV) 0.55% 9.99% -22.55% -9.22% 69.51%
Palladium (PALL) 0.38% 0.97% -8.75% -17.70% 14.29%

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Cryptocurrency

Digital assets experienced a quiet session characterized by modest declines across the complex. Bitcoin (IBIT) fell 0.70%, while Ethereum (ETHA) slipped 0.35%. The negative price action continues a challenging period for the asset class, with most major crypto ETFs remaining deep in negative territory on a year-to-date basis. Solana (SOLZ) was one of the day’s weaker performers, losing 1.52%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Solana (SOLZ) -1.52% -2.92% -19.63% -40.42% -63.74%
XRP (XRP) -1.15% -10.41% -34.28% -45.61%
Bitcoin (IBIT) -0.70% -2.60% -22.83% -28.24% -46.84%
Multi-Coin (NCIQ) -0.59% -2.66% -22.88% -30.89% -51.42%
Ethereum (ETHA) -0.35% 0.00% -18.32% -36.78% -58.74%

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What to Watch Today

Looking ahead to Monday, investors will be monitoring several key economic data points for further insight into the health of the U.S. economy. The schedule includes the New York Fed Empire State Manufacturing Survey for August at 8:30 AM ET and the National Association of Home Builders (NAHB) Confidence Index at 10:00 AM ET. The U.S. Treasury is also set to auction 13-week and 26-week bills. Later in the week, the earnings calendar will feature reports from major retailers including Walmart, Target, and Home Depot, which will provide a crucial read on consumer spending.

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.