Macro Overview
U.S. equities took a breather on Tuesday, with the S&P 500 (IVV) snapping a seven-day winning streak to close down -0.37%. The session was characterized by profit-taking after a run to all-time highs, with weakness in mega-cap names like Tesla weighing on the major indices. Small-cap stocks saw a more pronounced pullback, indicating a risk-off sentiment among investors. Despite the equity market’s pause, the flight to safety was evident as gold continued its remarkable ascent, surging past the $4,000 per ounce mark amid ongoing concerns about inflation and geopolitical uncertainty.
U.S. Size & Style
The risk-off tone was evident across the U.S. market, with smaller companies bearing the brunt of the sell-off. Small-caps (IJR) fell -1.28% and Mid-caps (IJH) were down -1.11%, both significantly underperforming their large-cap counterparts. Large-cap value stocks (IVE) showed relative strength, declining only -0.21%, while large-cap growth (IVW) dropped -0.54% as investors rotated out of higher-duration assets.
| Ticker | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | -0.21% | 0.02% | 2.76% | 5.87% | 10.27% | 8.41% |
| Large Cap (IVV) | -0.37% | 0.00% | 3.69% | 8.11% | 15.28% | 19.37% |
| Large Growth (IVW) | -0.54% | -0.07% | 4.42% | 9.96% | 19.57% | 28.43% |
| Mid Value (IJJ) | -0.92% | -1.01% | -1.20% | 3.11% | 5.15% | 8.02% |
| Mid Cap (IJH) | -1.11% | -0.94% | -1.04% | 3.50% | 5.52% | 6.74% |
| Mid Growth (IJK) | -1.10% | -0.92% | -0.99% | 3.81% | 5.60% | 5.32% |
| Small Value (IJS) | -1.44% | -1.88% | -0.38% | 8.54% | 2.79% | 6.80% |
| Small Cap (IJR) | -1.28% | -1.53% | -0.37% | 6.77% | 3.70% | 5.17% |
| Small Growth (IJT) | -1.10% | -1.22% | -0.29% | 5.13% | 4.59% | 3.26% |
U.S. Sectors & Industries
Defensive sectors outperformed in Tuesday’s session, with Consumer Staples (XLP) leading the way at +0.93%, followed by Utilities (XLU) at +0.46%. On the other end of the spectrum, cyclical areas faced heavy selling pressure. Consumer Discretionary (XLY) was the worst-performing sector, falling -1.75%, dragged down by weakness in areas like retail and homebuilders, with the latter (XHB) sinking -2.56%.
| Sector | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Consumer Staples (XLP) | +0.93% | 0.19% | -2.66% | -4.13% | 1.35% | -0.47% |
| Utilities (XLU) | +0.46% | 1.43% | 8.76% | 10.70% | 21.62% | 16.83% |
| Energy (XLE) | +0.16% | 0.65% | 3.31% | 4.72% | 7.06% | -1.11% |
| Financial (XLF) | +0.13% | 0.09% | 1.65% | 2.41% | 12.40% | 20.99% |
| Health Care (XLV) | +0.08% | -0.41% | 5.07% | 7.84% | 6.23% | -2.77% |
| Real Estate (XLRE) | -0.31% | -1.31% | -0.79% | 0.88% | 4.46% | -0.60% |
| Communication Services (XLC) | -0.39% | -0.28% | 1.55% | 8.85% | 20.94% | 30.93% |
| Materials (XLB) | -0.40% | -0.49% | -2.30% | -0.71% | 7.82% | -3.89% |
| Industrials (XLI) | -0.57% | -0.10% | 2.62% | 4.02% | 18.26% | 15.85% |
| Technology (XLK) | -0.67% | 0.34% | 8.82% | 12.21% | 23.43% | 28.48% |
| Consumer Discretionary (XLY) | -1.75% | -0.91% | 0.43% | 8.11% | 5.74% | 21.83% |
Global Thematic
Thematic strategies saw significant divergence. Niche areas like Cannabis (MJ +3.64%) and Bitcoin Mining (WGMI +2.08%) posted strong gains. Conversely, themes tied to innovation and interest-rate sensitivity, such as Home Construction (ITB -3.05%) and the flagship ARK Innovation fund (ARKK -2.71%), were among the day’s worst performers.
| Ticker | Name | 1-Day % Change |
|---|---|---|
| MJ | Amplify Alternative Harvest ETF | +3.64% |
| WGMI | CoinShares Bitcoin Mining ETF | +2.08% |
| URNJ | Sprott Junior Uranium Miners ETF | +1.95% |
| MSOS | AdvisorShares Pure US Cannabis ETF | +1.30% |
| URNM | Sprott Uranium Miners ETF | +0.90% |
| XHB | SPDR S&P Homebuilders ETF | -2.56% |
| BUG | Global X Cybersecurity ETF | -2.57% |
| WCBR | WisdomTree Cybersecurity Fund | -2.58% |
| BETZ | Roundhill Sports Betting & iGaming ETF | -2.70% |
| ARKK | ARK Innovation ETF | -2.71% |
Developed Markets ex-U.S.
International developed markets broadly declined, with the MSCI EAFE index (EFA) falling -0.87%. Weakness was pronounced in the Netherlands (EWN -1.88%), South Korea (EWY -1.69%), and Japan (EWJ -1.57%). More defensive markets like Switzerland (EWL -0.30%) and the U.K. (EWU -0.31%) held up better but still finished in negative territory.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Switzerland (EWL) | -0.30% | -0.19% | 0.53% | 3.70% | 25.38% | 13.73% |
| U.K. (EWU) | -0.31% | -0.45% | 2.17% | 7.69% | 27.78% | 20.25% |
| Hong Kong (EWH) | -0.60% | -0.70% | 1.09% | 8.02% | 31.25% | 9.67% |
| Canada (EWC) | -0.70% | -0.59% | 3.60% | 10.31% | 27.25% | 25.44% |
| Australia (EWA) | -0.80% | -1.06% | 0.78% | 4.46% | 15.48% | 6.24% |
| Germany (EWG) | -0.83% | -0.85% | 1.77% | -0.38% | 34.40% | 30.58% |
| Dev ex-U.S. (EFA) | -0.87% | -0.64% | 2.92% | 6.69% | 27.10% | 18.67% |
| France (EWQ) | -0.91% | -2.49% | 2.89% | 2.60% | 24.81% | 14.83% |
| Japan (EWJ) | -1.57% | 0.22% | 3.51% | 12.55% | 23.13% | 18.13% |
| South Korea (EWY) | -1.69% | -0.60% | 13.20% | 18.95% | 63.78% | 35.46% |
| Netherlands (EWN) | -1.88% | -1.78% | 9.52% | 8.48% | 33.38% | 20.10% |
Emerging Markets
Emerging markets also saw broad declines, with the benchmark EEM down -0.77%. Latin America was particularly weak, with Brazil (EWZ) falling -2.08%. China (MCHI) also underperformed, dropping -1.25%. India (INDA), however, bucked the trend, posting a modest gain of +0.23% and showing relative resilience amidst the global equity softness.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Thailand (THD) | +0.80% | -0.05% | 1.40% | 16.53% | 1.78% | -7.06% |
| India (INDA) | +0.23% | 0.82% | 0.76% | -4.48% | 0.46% | -5.00% |
| Indonesia (EIDO) | +0.06% | 0.00% | -2.79% | 0.52% | -3.14% | -15.09% |
| Taiwan (EWT) | -0.34% | 0.26% | 7.64% | 12.46% | 25.21% | 24.66% |
| Malaysia (EWM) | -0.38% | -0.80% | 3.84% | 8.61% | 8.20% | 4.72% |
| Mexico (EWW) | -0.61% | -2.65% | 1.90% | 6.43% | 41.43% | 25.21% |
| Emerging (EEM) | -0.77% | -0.31% | 7.16% | 12.46% | 30.50% | 17.19% |
| South Africa (EZA) | -0.81% | -0.41% | 11.86% | 20.34% | 56.42% | 38.99% |
| China (MCHI) | -1.25% | -1.11% | 7.27% | 20.49% | 41.81% | 13.47% |
| Brazil (EWZ) | -2.08% | -2.14% | 0.17% | 3.78% | 34.25% | 8.13% |
Fixed Income
The fixed income market saw gains in rate-sensitive government bonds, with Long-Term Treasuries (SPTL) up +0.52% as yields eased. However, credit-sensitive areas like High Yield (HYG) and Bank Loans (BKLN) finished in the red, down -0.11% and -0.10% respectively, reflecting the broader risk-off sentiment. Convertible bonds (CWB) were hit particularly hard, falling -0.87% alongside the decline in their underlying equities.
| Ticker | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.17% | -0.05% | 0.35% | 3.06% | 6.41% | 4.50% |
| Taxable Core Enhanced (IUSB) | +0.15% | -0.06% | 0.36% | 3.02% | 6.50% | 4.84% |
| Taxable Multisector (PYLD) | +0.04% | 0.04% | 0.67% | 3.13% | 7.80% | 8.05% |
| Taxable Ultrashort (BIL) | 0.00% | 0.02% | 0.32% | 1.04% | 3.22% | 4.33% |
| Taxable Short-Term (BSV) | +0.08% | 0.03% | 0.09% | 1.76% | 4.93% | 5.03% |
| Taxable Long Term (BLV) | +0.27% | -0.27% | 0.95% | 4.89% | 7.00% | 1.34% |
| Government Short (SPTS) | +0.07% | 0.03% | 0.26% | 1.55% | 4.03% | 4.69% |
| Government Intermediate (SPTI) | +0.21% | 0.00% | -0.16% | 2.30% | 6.52% | 4.83% |
| Government Long (SPTL) | +0.52% | -0.07% | 0.86% | 4.62% | 5.90% | -0.60% |
| Inflation Protected (TIP) | +0.28% | 0.11% | -0.08% | 2.60% | 7.00% | 4.76% |
| Corporate (SPIB) | +0.06% | -0.03% | 0.31% | 2.63% | 6.83% | 6.22% |
| Taxable High Yield (HYG) | -0.11% | -0.09% | 0.35% | 2.31% | 7.22% | 7.98% |
| Bank Loans (BKLN) | -0.10% | -0.10% | 0.50% | 1.62% | 4.74% | 6.98% |
| Preferred Stock (PFF) | -0.13% | -0.03% | 0.63% | 4.34% | 6.12% | 3.06% |
| Convertible (CWB) | -0.87% | -0.17% | 6.33% | 11.41% | 19.65% | 22.83% |
| Mortgage Backed (MBS) | +0.21% | 0.01% | 0.58% | 3.60% | 7.09% | 5.17% |
| International USD (BNDX) | +0.08% | -0.14% | 0.09% | 0.71% | 2.53% | 3.13% |
| International (IGOV) | -0.42% | -0.92% | -0.99% | -1.33% | 9.84% | 3.78% |
| Emerging USD (EMB) | -0.04% | -0.17% | 0.72% | 4.63% | 11.04% | 9.15% |
| Emerging (EMLC) | -0.28% | -0.28% | 0.69% | 2.54% | 14.99% | 9.30% |
| Municipal Short (SUB) | +0.08% | -0.02% | -0.15% | 0.94% | 2.95% | 3.03% |
| Municipal Intermediate (MUB) | +0.08% | 0.15% | 1.50% | 2.98% | 2.41% | 1.93% |
| Municipal Long (MLN) | +0.06% | 0.06% | 2.77% | 4.80% | 0.56% | 0.10% |
| Municipal High Yield (HYD) | +0.07% | -0.03% | 1.51% | 2.68% | 0.96% | 0.80% |
Commodities
Commodities were a mixed bag. Energy prices moved higher, with Natural Gas (UNG) surging +3.61%. Precious metals also saw bifurcated action; Gold (GLD) rose +0.52%, continuing its record run, while Silver (SLV) pulled back sharply, falling -1.52%. Agriculture (DBA) was broadly weaker, declining by -0.52%.
| Commodity | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Natural Gas (UNG) | +3.61% | 5.59% | 6.49% | -8.80% | -18.03% | -10.40% |
| Palladium (PALL) | +1.34% | 6.29% | 20.92% | 21.19% | 47.22% | 30.08% |
| Energy (DBE) | +0.64% | 1.88% | 1.55% | -1.68% | 2.54% | -1.59% |
| Industrial Metals (DBB) | +0.62% | 0.81% | 6.66% | 10.74% | 12.10% | 4.29% |
| Copper (CPER) | +0.55% | -0.06% | 12.03% | 0.48% | 24.40% | 9.75% |
| Gold (GLD) | +0.52% | 2.41% | 10.64% | 19.16% | 51.27% | 50.00% |
| Broad Commodities (DJP) | +0.45% | 1.35% | 4.85% | 5.27% | 12.40% | 9.24% |
| WTI Crude Oil (USO) | +0.45% | 2.08% | 0.78% | -4.29% | -3.11% | -7.58% |
| Brent Crude Oil (BNO) | +0.37% | 2.12% | 1.22% | -2.03% | -0.17% | -6.59% |
| Soybeans (SOYB) | +0.28% | 0.23% | -0.36% | 0.88% | 1.68% | -3.53% |
| Gasoline (UGA) | +0.21% | 2.38% | -0.10% | 1.56% | 1.14% | -2.44% |
| Precious Metals (DBP) | +0.10% | 1.75% | 11.00% | 20.39% | 50.58% | 48.33% |
| Platinum (PPLT) | -0.26% | 0.96% | 17.50% | 18.08% | 77.95% | 65.29% |
| Corn (CORN) | -0.51% | -0.57% | -0.12% | -0.17% | -6.72% | -5.61% |
| Agriculture (DBA) | -0.52% | -0.26% | -2.06% | 3.46% | 0.04% | 9.94% |
| Sugar (CANE) | -0.82% | 0.91% | 1.34% | -3.05% | -7.17% | -18.57% |
| Wheat (WEAT) | -0.97% | -1.20% | -1.68% | -9.69% | -14.94% | -23.65% |
| Silver (SLV) | -1.52% | -0.30% | 16.61% | 29.79% | 64.79% | 49.98% |
Cryptocurrency
The cryptocurrency market saw a significant pullback after reaching new highs. Bitcoin (IBIT) fell -3.03%, while Ethereum (ETHA) experienced a steeper decline of -5.28%. The weakness was even more pronounced in alternative coins, with Solana (SOLZ) dropping -6.15% as traders took profits across the digital asset space.
| Asset | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Solana (SOLZ) | -6.15% | -5.35% | 6.01% | 41.26% | ||
| Ethereum (ETHA) | -5.28% | -1.05% | 3.45% | 76.01% | 34.05% | 82.85% |
| Multi-Coin (NCIQ) | -3.63% | -1.55% | 7.20% | 19.28% | ||
| Bitcoin (IBIT) | -3.03% | -0.97% | 9.00% | 12.59% | 30.31% | 91.71% |
What to Watch Today
The main event on the economic calendar today is the release of the minutes from the Federal Reserve’s September FOMC meeting at 2:00 PM ET. With the ongoing government shutdown delaying key economic data releases like the monthly jobs report, investors will be parsing this document with extra care. The minutes will be scrutinized for clues on the future path of monetary policy and the degree of consensus or division among policymakers regarding the timing of potential interest rate cuts. Any language suggesting increased concern about the labor market or confidence that inflation is under control could reinforce market expectations for a rate cut at the late October meeting.
For a deeper dive into the data, access today’s full Daily ETF Data Pack.
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.
