Soft Jobs Data Lifts Equities as EM Outperforms

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Macro Overview

U.S. equities advanced on Friday, with the S&P 500 (IVV) gaining 0.75% following a weaker-than-expected September jobs report that reduced the probability of an October Fed rate hike. Developed ex-U.S. markets (EFA) outpaced domestic shares with a 1.11% gain, while Emerging Markets (EEM) led the major regions at 1.29%, extending a 24.31% year-to-date advance. Fixed income lagged as yields moved lower but bond prices failed to keep pace, with the U.S. Aggregate Bond (AGG) slipping 0.18%. Broad Commodities (DJP) declined 0.48% as crude oil fell on news of a coordinated release of strategic reserves by G-7 and European nations. South Korea stood out as the session’s outlier among single-country funds, surging 3.10% and pushing its year-to-date gain to an exceptional 97.37%.

U.S. Size & Style

Small caps led the size and style complex, with the Small Growth (IJT) segment rising 1.47% and Small Cap (IJR) adding 1.13%, consistent with the broad-based rally that lifted the Russell 2000 nearly a full point. Large Growth (IVW) gained 0.97% and carries an RSI of 63, still shy of overbought territory despite a 17.07% year-to-date return. Value styles trailed across the cap spectrum, with Large Value (IVE) up only 0.44% and showing an RSI of 39. Small and mid value names remain well below their 50-day moving averages, with only 18-25% of constituents trading above that threshold, pointing to lagging intermediate-term momentum relative to growth peers.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Large Value (IVE)0.44%-2.63%0.15%9.54%12.73%
Large Cap (IVV)0.75%0.85%3.60%13.80%16.32%
Large Growth (IVW)0.97%3.69%6.38%17.07%18.99%
Mid Value (IJJ)1.05%-3.93%-3.86%7.95%9.55%
Mid Cap (IJH)0.95%-1.99%-3.25%12.08%13.37%
Mid Growth (IJK)0.86%-0.15%-2.72%15.85%16.86%
Small Value (IJS)0.93%-4.13%-3.33%15.81%18.56%
Small Cap (IJR)1.13%-3.66%-5.09%16.21%17.38%
Small Growth (IJT)1.47%-3.16%-6.87%16.39%15.97%

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U.S. Sectors & Industries

Consumer Discretionary (XLY) topped the sector tape with a 1.13% gain, aided by Tesla’s reported delivery strength, while Technology (XLK) rose 1.01% on continued semiconductor leadership and now carries an RSI of 69 with 70% of constituents above their 50-day average, the highest breadth reading among sectors. Technology’s 39.28% year-to-date gain remains the standout across the group. Health Care (XLV) was the lone decliner, essentially flat at -0.01%. Financials (XLF) barely advanced at 0.06% and shows an RSI of 25, an oversold reading alongside Real Estate (XLRE) at an RSI of 21, both reflecting weak one-month trends of -6.91% and -5.90%, respectively.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
S&P 500 (SPY)0.74%0.83%3.59%13.75%16.24%
Consumer Discretionary (XLY)1.13%-3.99%-5.84%-7.28%-7.32%
Technology (XLK)1.01%8.95%10.77%39.28%40.36%
Industrials (XLI)0.78%-1.37%-7.34%10.43%11.46%
Materials (XLB)0.66%-7.30%-5.62%9.12%10.88%
Utilities (XLU)0.38%-5.97%-12.32%-4.76%-6.79%
Communication Services (XLC)0.35%-1.56%0.98%-5.44%-4.10%
Real Estate (XLRE)0.32%-5.90%-7.90%3.55%0.78%
Consumer Staples (XLP)0.25%-5.22%-4.62%5.67%6.17%
Energy (XLE)0.19%-2.91%18.76%43.29%46.10%
Financials (XLF)0.06%-6.91%-3.49%-1.15%1.83%
Health Care (XLV)-0.01%-3.55%1.88%8.68%17.98%

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Global Thematic

Thematic flows favored hardware and materials exposure, with the Tema Photonics & Optical ETF (LAZR) gaining 5.81% and the Tema Space Innovators ETF (NASA) adding 4.73%, consistent with the day’s semiconductor and tech-led rally. The First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) rose 4.35% despite softness in underlying digital assets, while copper and battery-materials themes also participated via the iShares Energy Storage & Materials ETF (IBAT) and Sprott Copper Miners ETF (COPP). On the laggard side, the AdvisorShares Pure US Cannabis ETF (MSOS) fell 2.83%, and cloud-computing exposure via the Fidelity Cloud Computing ETF (FCLD) declined 1.05%, diverging from the broader technology advance.

Name (Ticker)1-Day
Leaders
Tema Photonics & Optical ETF (LAZR)5.81%
Tema Space Innovators ETF (NASA)4.73%
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT)4.35%
iShares Energy Storage & Materials ETF (IBAT)3.40%
Sprott Copper Miners ETF (COPP)3.30%
Laggards
AdvisorShares Pure US Cannabis ETF (MSOS)-2.83%
Simplify Propel Opportunities ETF (SURI)-1.83%
VanEck BDC Income ETF (BIZD)-1.12%
Fidelity Cloud Computing ETF (FCLD)-1.05%
AdvisorShares Psychedelics ETF (PSIL)-0.95%

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Developed ex-U.S. & Emerging Markets

South Korea (EWY) and Taiwan (EWT) led international markets with gains of 3.10% and 3.15%, respectively, extending extraordinary year-to-date advances of 97.37% and 83.11% tied to continued semiconductor demand. The Netherlands (EWN) and Japan (EWJ) also posted solid gains of 1.89% and 1.58%. Hong Kong (EWH) was the session’s weakest market, falling 2.66%, while China (MCHI) declined 1.67% and remains down 14.14% year-to-date, the weakest major emerging market tracked. Within Latin America, Brazil (EWZ) and Mexico (EWW) both advanced near 2-3%, supporting the broader emerging markets outperformance versus developed peers.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA)1.11%-2.90%-0.39%9.96%14.03%
Australia (EWA)1.18%-5.69%0.82%9.66%7.48%
Canada (EWC)0.75%-4.16%1.64%9.39%17.66%
France (EWQ)1.25%-7.37%-8.04%-3.90%-2.94%
Germany (EWG)1.18%-5.10%-2.39%-0.89%-0.82%
Hong Kong (EWH)-2.66%-5.68%3.06%3.13%4.75%
Japan (EWJ)1.58%3.00%6.21%23.17%28.77%
Netherlands (EWN)1.89%-0.18%0.47%20.17%19.58%
South Korea (EWY)3.10%7.28%6.52%97.37%134.94%
Switzerland (EWL)0.70%-5.82%-7.42%0.53%7.16%
U.K. (EWU)0.63%-4.23%-2.08%6.52%13.00%
Emerging Markets
Emerging Markets (EEM)1.29%0.77%3.00%24.31%27.59%
Brazil (EWZ)2.83%0.26%10.92%21.36%32.07%
China (MCHI)-1.67%-6.05%0.65%-14.14%-22.06%
India (INDA)0.35%-6.90%-6.13%-13.93%-11.05%
Indonesia (EIDO)0.60%-10.15%2.01%-36.42%-31.17%
Malaysia (EWM)0.63%-3.67%0.33%0.94%6.80%
Mexico (EWW)1.89%-6.73%-5.84%4.04%9.91%
South Africa (EZA)0.52%-9.72%-1.27%-6.21%6.02%
Taiwan (EWT)3.15%6.31%10.94%83.11%90.14%
Thailand (THD)1.32%-0.67%0.00%22.84%24.78%

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Fixed Income

Fixed income was broadly softer despite the dovish shift in rate-hike expectations, with Long-Term Treasuries (BLV) down 0.26% and the Long-Term (SPTL) segment off 0.29%, both carrying negative year-to-date returns near -7%. Core exposures including the U.S. Aggregate Bond (AGG) and Core Enhanced (IUSB) each slipped 0.18%. Credit-sensitive segments held up better, with High Yield (HYG) flat and Convertible bonds (CWB) gaining 0.98%, tracking the equity rally. Municipal bonds lagged, with the Long-Term (MLN) segment down 0.92%, the weakest reading across the fixed income complex.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Multisector
Short-Term (BSV)-0.12%-0.88%-0.95%-0.32%0.66%
Core (AGG)-0.18%-2.33%-3.42%-2.73%-2.17%
Core Enhanced (IUSB)-0.18%-2.38%-3.32%-2.52%-1.86%
Long-Term (BLV)-0.26%-4.44%-7.51%-6.79%-7.66%
Government
Ultrashort (BIL)0.02%0.32%0.88%2.72%3.69%
Short-Term (SPTS)0.00%-0.37%-0.18%0.58%1.62%
Inflation Protected (TIP)-0.19%-2.57%-3.19%-2.04%-2.25%
Intermediate (SPTI)-0.26%-2.08%-2.88%-2.90%-2.21%
Long-Term (SPTL)-0.29%-4.75%-7.58%-7.37%-8.25%
Specialty
Convertible (CWB)0.98%0.82%-1.79%15.73%12.75%
Preferred Stock (PFF)0.34%-1.59%-1.56%-0.66%-1.77%
Bank Loans (BKLN)0.10%0.17%2.30%2.22%4.31%
High Yield (HYG)0.01%-2.35%-2.08%-0.29%0.79%
Corporate (SPIB)-0.16%-1.74%-2.40%-1.54%-0.69%
Mortgage Backed (MBB)-0.37%-3.16%-4.13%-3.21%-2.18%
International & EM
International Local (IGOV)0.40%-3.12%-3.00%-4.44%-5.25%
Emerging Local (EMLC)0.37%-2.95%-1.76%-0.05%3.18%
International USD (BNDX)0.15%-0.58%-2.13%-0.95%-0.77%
Emerging USD (EMB)-0.13%-3.79%-5.01%-2.60%-0.25%
Municipals
Short-Term (SUB)-0.03%-1.07%-1.01%-0.12%0.58%
High Yield (HYD)-0.21%-2.84%-5.97%-3.02%-1.23%
Intermediate (MUB)-0.37%-2.86%-5.31%-3.44%-1.98%
Long-Term (MLN)-0.92%-4.44%-7.74%-4.72%-3.34%

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

Commodities

Commodities were mixed, with Broad Commodities (DJP) down 0.48% as crude prices fell following the coordinated strategic reserve release by G-7 and European nations; WTI Crude (USO) declined 1.77% on the day despite maintaining a 113.09% year-to-date gain. Natural Gas (UNG) rose 3.05%, and Sugar (CANE) advanced 3.14%, standing out among softs. Precious metals softened broadly, with Gold (GLD) down 0.68% and Silver (SLV) off 0.51%, with Silver’s year-to-date decline of 15.03% the steepest among the metals group. Industrial metals were modestly softer as well, with Copper (CPER) nearly flat and Palladium (PALL) falling 1.02%.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
Broad Commodities (DJP)-0.48%-0.94%18.26%37.06%45.42%
Agriculture
Sugar (CANE)3.14%1.37%20.98%21.17%12.68%
Broad (DBA)0.28%-3.62%5.50%10.54%9.53%
Wheat (WEAT)0.12%-11.16%10.44%23.94%18.99%
Soybeans (SOYB)0.07%-1.45%11.37%24.52%24.41%
Corn (CORN)-0.68%-6.78%11.80%6.32%6.68%
Energy
Natural Gas (UNG)3.05%-2.60%-9.59%-14.60%-22.16%
Brent Crude (BNO)0.24%13.20%59.06%122.81%116.10%
Broad (DBE)-1.12%7.30%44.13%112.83%107.63%
WTI Crude (USO)-1.77%4.41%41.73%113.09%106.00%
Industrial Metals
Copper (CPER)0.03%-0.03%5.98%13.04%29.32%
Broad (DBB)-0.44%-2.81%3.88%8.50%22.55%
Precious Metals
Silver (SLV)-0.51%-7.33%-0.51%-15.03%28.71%
Platinum (PPLT)-0.52%-3.44%4.82%-17.23%8.02%
Gold (GLD)-0.68%-5.62%0.53%-4.08%7.15%
Palladium (PALL)-1.02%-13.55%-7.25%-26.92%-6.86%
Broad (DBP)-1.05%-6.15%-0.15%-7.69%9.44%

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Cryptocurrency

Digital assets diverged from the equity rally, with all major crypto-linked ETFs posting losses on the day. XRP (XRP) fell 1.97%, the largest decline in the group, followed by the Multi-Coin (NCIQ) product down 1.82% and Ethereum (ETHA) off 1.28%. Bitcoin (IBIT) declined a more modest 0.48%, while Solana (SOLZ) was roughly flat at -0.12%. Despite the daily pullback, three-month performance across the space remains strongly positive, led by Ethereum’s 56.38% gain, suggesting the softness was a near-term pause rather than a trend reversal.

Name (Ticker)1-Day1 Month3 MonthYTD1 Year
XRP (XRP)-1.97%9.60%35.64%-19.88%—
Multi-Coin (NCIQ)-1.82%8.55%37.69%-7.27%-35.84%
Ethereum (ETHA)-1.28%11.41%56.38%-10.34%-40.94%
Bitcoin (IBIT)-0.48%9.00%36.88%-3.87%-30.59%
Solana (SOLZ)-0.12%18.71%45.44%-6.47%-51.45%

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What to Watch Today

Monday’s calendar features the S&P Global Services and Composite PMI final readings for September at 9:45 AM ET, followed by the ISM Services PMI and its underlying business activity and employment components at 10:00 AM ET. The University of Michigan’s preliminary October 5-Year Inflation Expectations survey is also due at 10:00 AM ET, alongside the USDA’s October WASDE crop report at noon. Fed Governor Bowman is scheduled to speak during the afternoon session. Markets in China and South Korea will be closed for National Day and National Foundation Day holidays, respectively, which may thin overseas liquidity.

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.