Strong Jobs Report Weighs on U.S. Stocks, Lifts International Equities

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Macro Overview

U.S. equities retreated after a much stronger-than-expected August jobs report fueled expectations of a potential Federal Reserve interest rate hike. The S&P 500 (IVV) declined 0.41% as the economy added 162,000 jobs, nearly triple the forecast. In contrast, international markets showed strength, with Developed ex-U.S. (EFA) gaining 0.13% and Emerging Markets (EEM) surging 1.82% to become the day’s standout performer. Fixed income markets were muted, with the U.S. Aggregate Bond (AGG) up just 0.05%, while Broad Commodities (DJP) slipped 0.58%.

U.S. Size & Style

A clear divergence emerged across U.S. market capitalization, as small and mid-caps outperformed their large-cap counterparts. Large-cap value stocks were the weakest segment, with the Large Value (IVE) index falling 0.66%. Conversely, smaller companies advanced, led by a 0.63% gain in the Small Value (IJS) category. This performance split occurred despite a majority of stocks across most segments trading below their 50-day moving averages, suggesting selective strength within the market.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.66% 0.48% 3.74% 12.51% 17.95%
Large Cap (IVV) -0.41% -0.11% 1.99% 13.59% 20.07%
Large Growth (IVW) -0.14% -0.69% 0.53% 14.23% 21.54%
Mid Value (IJJ) 0.24% -2.16% 3.55% 13.33% 14.67%
Mid Cap (IJH) 0.13% -2.10% 0.77% 15.48% 16.91%
Mid Growth (IJK) 0.06% -2.10% -1.72% 17.36% 18.70%
Small Value (IJS) 0.63% -1.95% 4.24% 21.64% 26.39%
Small Cap (IJR) 0.37% -3.37% 3.93% 21.49% 23.98%
Small Growth (IJT) 0.14% -4.89% 3.54% 21.02% 21.38%

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U.S. Sectors & Industries

Sector performance was widely dispersed, with Technology (XLK) standing out as the clear leader with a 0.70% advance, buoyed by strong earnings and guidance from AI-related companies like Dell. On the other end of the spectrum, Consumer Discretionary (XLY) was the session’s worst performer, dropping 1.33% following a reduced forecast from Lululemon. Defensive sectors such as Health Care (XLV) and Consumer Staples (XLP) also finished lower, declining 1.04% and 0.80% respectively.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.39% -0.15% 1.99% 13.55% 19.96%
Technology (XLK) 0.70% 0.20% -2.93% 30.40% 43.35%
Industrials (XLI) 0.41% -5.97% -0.26% 13.58% 17.18%
Utilities (XLU) 0.12% -2.34% -1.33% 2.26% 5.75%
Materials (XLB) -0.34% 0.85% 1.97% 16.58% 16.93%
Real Estate (XLRE) -0.72% -2.75% -0.20% 10.55% 8.79%
Financials (XLF) -0.79% 0.38% 11.71% 6.99% 9.13%
Consumer Staples (XLP) -0.80% -0.93% 3.82% 10.26% 7.81%
Energy (XLE) -0.87% 9.47% 9.81% 45.23% 48.27%
Health Care (XLV) -1.04% 5.77% 13.23% 11.70% 26.92%
Communication Services (XLC) -1.19% -0.01% -0.69% -4.28% -0.56%
Consumer Discretionary (XLY) -1.33% -2.86% -1.81% -3.38% -1.51%

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Global Thematic

Artificial intelligence and semiconductor-related themes dominated Friday’s trading, capturing all top five performance spots. The Tema Memory ETF (DISK) and Roundhill Memory ETF (DRAM) led the way with gains of 7.89% and 6.61%, respectively, reflecting positive corporate results in the AI server space. In contrast, cloud computing and precious metals miners faced headwinds. The WisdomTree Cloud Computing Fund (WCLD) fell 2.98%, while several silver and gold miner funds, including the Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR), declined by more than 2.7%.

Name (Ticker) 1-Day
Leaders
Tema Memory ETF (DISK) 7.89%
Roundhill Memory ETF (DRAM) 6.61%
Roundhill Neocloud ETF (NCLD) 5.12%
VistaShares Artificial Intelligence Supercycle ETF (AIS) 4.66%
Corgi Lithography & Semiconductor Photonics ETF (EUV) 4.44%
Laggards
WisdomTree Cloud Computing Fund (WCLD) -2.98%
Sprott Silver Miners & Physical Silver ETF Silver Miners ETF (SLVR) -2.71%
VanEck Junior Gold Miners ETF (GDXJ) -2.49%
iShares MSCI Global Silver Miners ETF (SLVP) -2.45%
Sprott Junior Gold Miners ETF (SGDJ) -2.44%

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Developed ex-U.S. & Emerging Markets

Emerging markets significantly outpaced their developed counterparts, propelled by a surge in Asian technology hubs. The broad Emerging Markets (EEM) index climbed 1.82%, with South Korea (EWY) delivering an exceptional 4.60% return, marking it as a top global performer. Taiwan (EWT) also contributed with a solid 1.86% gain. Meanwhile, the Developed ex-U.S. (EFA) index posted a more modest 0.13% increase, as gains in Japan and the Netherlands were offset by declines in Canada and Switzerland.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.13% 0.96% 4.86% 14.60% 22.63%
Australia (EWA) -0.46% 0.37% 5.57% 17.06% 15.93%
Canada (EWC) -0.69% 3.40% 4.90% 15.58% 28.03%
France (EWQ) -0.11% -3.87% 1.05% 3.97% 10.46%
Germany (EWG) -0.07% 0.11% 3.93% 5.32% 8.28%
Hong Kong (EWH) 0.96% 1.22% 4.67% 10.92% 15.88%
Japan (EWJ) 0.39% 3.88% 4.96% 22.37% 30.25%
Netherlands (EWN) 1.48% 0.06% 2.31% 22.35% 37.03%
South Korea (EWY) 4.60% 10.36% -7.40% 94.27% 164.36%
Switzerland (EWL) -0.57% -0.97% 3.86% 7.15% 15.32%
U.K. (EWU) -0.18% 0.52% 5.14% 12.08% 21.40%
Emerging Markets
Emerging Markets (EEM) 1.82% 4.09% -0.08% 26.20% 40.50%
Brazil (EWZ) -0.71% 4.90% 9.89% 20.31% 35.74%
China (MCHI) 0.99% -2.10% -0.82% -7.99% -7.21%
India (INDA) -0.02% -1.23% 3.94% -7.66% -5.10%
Indonesia (EIDO) -1.21% 2.67% 10.88% -28.91% -24.46%
Malaysia (EWM) -0.49% -0.88% 1.88% 5.01% 16.88%
Mexico (EWW) -0.44% -0.56% 0.49% 12.15% 25.67%
South Africa (EZA) -0.25% 8.61% 8.08% 6.33% 36.43%
Taiwan (EWT) 1.86% 9.75% 6.08% 76.58% 97.89%
Thailand (THD) 0.34% 0.00% 0.17% 25.87% 30.47%

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Fixed Income

The fixed income market showed a muted reaction to the strong labor market report, with most core bond segments ending the day nearly flat. The U.S. Aggregate Bond (AGG) edged up 0.05%, and similar minimal price changes were seen across the Treasury curve. Credit-sensitive assets were mixed, as High Yield (HYG) dipped 0.06% while Bank Loans (BKLN) rose 0.10%. Convertible bonds were a notable outlier, as the Convertible (CWB) fund gained 0.48%, tracking strength in the underlying technology equities.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Long-Term (BLV) 0.11% -0.57% -2.66% -2.20% -0.67%
Core (AGG) 0.05% -0.33% -0.67% -0.25% 1.32%
Core Enhanced (IUSB) 0.03% -0.31% -0.55% 0.00% 1.65%
Short-Term (BSV) 0.00% -0.07% 0.28% 0.65% 1.95%
Government
Long-Term (SPTL) 0.20% -0.30% -2.21% -2.40% -0.80%
Ultrashort (BIL) 0.03% 0.34% 0.94% 2.44% 3.73%
Short-Term (SPTS) 0.03% 0.15% 0.53% 1.05% 2.47%
Inflation Protected (TIP) -0.03% -0.07% -0.88% 0.65% 0.80%
Intermediate (SPTI) -0.04% -0.48% -0.43% -0.73% 0.35%
Specialty
Convertible (CWB) 0.48% -2.13% -5.70% 16.65% 21.58%
Bank Loans (BKLN) 0.10% 1.34% 2.14% 2.30% 4.96%
Mortgage Backed (MBB) 0.06% -0.26% -0.51% 0.17% 2.46%
Corporate (SPIB) 0.00% -0.39% -0.30% 0.29% 1.86%
Preferred Stock (PFF) 0.00% -0.72% -1.46% 1.48% 1.62%
High Yield (HYG) -0.06% 0.06% 0.65% 2.17% 3.89%
International & EM
International USD (BNDX) 0.11% -0.83% -0.58% 0.05% 0.78%
International Local (IGOV) 0.07% 0.00% -0.39% -0.67% -0.29%
Emerging USD (EMB) 0.02% -0.35% -0.42% 1.58% 5.61%
Emerging Local (EMLC) 0.00% 0.95% 2.40% 3.47% 8.32%
Municipals
High Yield (HYD) 0.06% -1.20% -2.55% -0.34% 4.04%
Intermediate (MUB) 0.03% -1.36% -2.15% -0.77% 2.74%
Short-Term (SUB) 0.00% 0.05% 0.11% 0.95% 1.64%
Long-Term (MLN) -0.11% -2.19% -2.53% -0.57% 4.55%

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Commodities

Commodities broadly declined, with precious metals and agricultural products leading the way down. The prospect of higher interest rates following the strong jobs report weighed on non-yielding assets, sending Gold (GLD) lower by 0.84% and Silver (SLV) by 1.21%. In agriculture, Wheat (WEAT) posted the steepest loss at 2.32%. The energy complex was mixed despite heightened geopolitical tensions, with WTI Crude (USO) down 0.09% and Brent Crude (BNO) up 0.38%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -0.58% 12.57% 6.45% 37.38% 49.59%
Agriculture
Sugar (CANE) 0.26% 15.24% 17.73% 17.07% 7.94%
Corn (CORN) -0.50% 13.07% 16.48% 13.20% 13.78%
Soybeans (SOYB) -0.50% 10.38% 14.30% 26.49% 25.40%
Broad (DBA) -0.83% 4.30% 8.09% 13.05% 9.71%
Wheat (WEAT) -2.32% 11.02% 17.89% 32.65% 27.05%
Energy
Natural Gas (UNG) 0.67% 8.09% -12.87% -13.87% -19.39%
Brent Crude (BNO) 0.38% 23.81% 6.92% 98.13% 86.60%
Broad (DBE) 0.12% 20.82% 10.62% 98.05% 89.15%
WTI Crude (USO) -0.09% 22.61% 3.82% 105.26% 91.37%
Industrial Metals
Copper (CPER) 0.10% -0.47% 0.55% 14.27% 42.27%
Broad (DBB) -0.16% 1.82% -1.79% 12.25% 33.64%
Precious Metals
Platinum (PPLT) 0.06% 4.83% -4.13% -11.49% 31.65%
Broad (DBP) -0.84% 8.76% -3.19% -0.30% 28.52%
Gold (GLD) -0.84% 8.72% -1.09% 2.64% 24.51%
Silver (SLV) -1.21% 11.11% -10.69% -7.14% 61.98%
Palladium (PALL) -1.86% 3.31% 6.03% -12.95% 23.40%

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Cryptocurrency

Digital assets retreated across the board on Friday, giving back a portion of their recent strong monthly gains. XRP (XRP) led the decline with a 4.86% loss, while Solana (SOLZ) fell 3.71%. The market’s largest assets also pulled back, with Bitcoin (IBIT) down 2.42% and Ethereum (ETHA) losing 2.63%. This risk-off sentiment in the crypto space capped a week of otherwise robust performance for the asset class.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -4.86% 29.55% 19.28% -23.73%
Solana (SOLZ) -3.71% 36.65% 46.66% -19.46% -52.35%
Ethereum (ETHA) -2.63% 30.88% 38.31% -17.43% -42.66%
Multi-Coin (NCIQ) -2.57% 25.28% 26.59% -11.71% -33.49%
Bitcoin (IBIT) -2.42% 24.29% 25.57% -8.90% -27.46%

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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.