Surging Energy Prices Fuel Commodity Gains Amid Cautious Equity Trading

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Macro Overview

Global markets displayed a significant divergence as escalating geopolitical tensions in the Middle East pushed commodity prices higher while equities traded cautiously. The Broad Commodities index (DJP) was the standout performer, gaining 1.17%, whereas the S&P 500 (IVV) finished nearly flat with a 0.14% loss. Developed ex-U.S. equities (EFA) managed a slight 0.18% gain, while Emerging Markets (EEM) fell 0.54%, and rising yields pressured fixed income markets.

U.S. Size & Style

U.S. equity style factors reflected a cautious, risk-off sentiment as growth-oriented segments underperformed. Large-caps were mixed, with Large Value (IVE) posting a minor gain while Large Growth (IVW) declined 0.27%. The weakness was more pronounced down the capitalization scale, where Small Growth (IJT) was the day’s laggard, falling 0.92%. This dynamic suggests investors favored more defensive positioning ahead of key technology earnings reports.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) 0.07% 1.72% 5.21% 9.63% 17.95%
Large Cap (IVV) -0.14% 0.42% 5.37% 10.22% 20.28%
Large Growth (IVW) -0.27% -0.67% 5.44% 10.51% 21.91%
Mid Value (IJJ) 0.22% 1.92% 5.11% 13.08% 17.42%
Mid Cap (IJH) -0.04% -0.50% 4.46% 15.23% 20.04%
Mid Growth (IJK) -0.35% -2.76% 3.72% 17.03% 22.25%
Small Value (IJS) -0.25% 2.99% 7.51% 21.16% 33.76%
Small Cap (IJR) -0.54% 1.76% 7.82% 21.86% 30.89%
Small Growth (IJT) -0.92% 0.48% 8.06% 22.33% 27.99%

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U.S. Sectors & Industries

Sector performance was sharply divided between defensive, inflation-sensitive areas and growth-oriented technology groups. Utilities (XLU) led all sectors with a strong 2.25% advance, followed by a 1.20% gain in Energy (XLE) which was directly fueled by a spike in crude oil prices. Conversely, Communication Services (XLC) and Consumer Discretionary (XLY) were the weakest performers, each falling approximately 0.75% as investors awaited major earnings announcements after the bell.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.12% 0.41% 5.36% 10.19% 20.17%
Utilities (XLU) 2.25% 2.71% 3.01% 9.02% 11.00%
Materials (XLB) 1.44% -1.55% -1.58% 12.97% 12.56%
Energy (XLE) 1.20% 9.51% 5.45% 34.21% 42.81%
Consumer Staples (XLP) 0.38% 2.68% 3.48% 10.00% 6.26%
Industrials (XLI) 0.11% -1.62% 4.82% 15.90% 19.94%
Financials (XLF) -0.11% 4.38% 7.73% 3.22% 8.04%
Technology (XLK) -0.28% -6.18% 14.17% 25.52% 40.03%
Real Estate (XLRE) -0.42% 2.25% 4.46% 13.27% 8.94%
Health Care (XLV) -0.51% 6.24% 9.39% 3.87% 21.47%
Consumer Discretionary (XLY) -0.74% -0.80% -3.93% -4.13% 1.92%
Communication Services (XLC) -0.75% 2.19% -7.12% -6.70% 2.52%

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Global Thematic

Thematic ETFs saw a clear rotation towards safe-haven and inflation-hedging assets, while high-growth technology themes faced significant selling pressure. The day’s leaderboard was dominated by precious metals miners, with the Global X Gold Explorers ETF (GOEX) climbing 4.37% amid rising geopolitical risk. On the other end of the spectrum, cloud computing funds were hit hard, evidenced by a 4.33% drop in the WisdomTree Cloud Computing Fund (WCLD), reflecting anxiety in the tech sector.

Name (Ticker) 1-Day
Leaders
Global X Gold Explorers ETF (GOEX) 4.37%
Sprott Active Gold & Silver Miners ETF (GBUG) 4.08%
Sprott Gold Miners ETF (SGDM) 3.69%
VanEck Junior Gold Miners ETF (GDXJ) 3.57%
U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) 3.49%
Laggards
WisdomTree Cloud Computing Fund (WCLD) -4.33%
Global X Social Media ETF (SOCL) -3.29%
Global X Cloud Computing ETF (CLOU) -3.01%
State Street SPDR FactSet Innovative Technology ETF (XITK) -2.94%
Avory Foundational ETF (AVRY) -2.90%

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Developed ex-U.S. & Emerging Markets

International equity performance was mixed, with developed markets slightly outperforming their emerging counterparts. The broad Developed ex-U.S. index (EFA) edged up 0.18%, supported by 1.00% gains in the U.K. (EWU) and a 1.08% rise in Hong Kong (EWH). In emerging markets, commodity-heavy Brazil (EWZ) was a notable outlier, surging 2.81%, while South Korea (EWY) posted a significant 1.43% loss.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.18% -0.32% 3.84% 10.27% 20.71%
Australia (EWA) 0.63% 1.44% -0.55% 11.75% 12.13%
Canada (EWC) 0.39% 2.40% 2.70% 10.43% 27.61%
France (EWQ) 0.73% 0.69% 2.76% 3.58% 8.52%
Germany (EWG) -0.05% -0.55% -0.45% -0.87% -0.68%
Hong Kong (EWH) 1.08% 5.67% -2.55% 7.77% 13.83%
Japan (EWJ) -0.59% -4.93% 5.61% 14.79% 31.80%
Netherlands (EWN) 0.28% -3.52% 9.01% 20.71% 33.92%
South Korea (EWY) -1.43% -22.19% 9.39% 75.30% 139.14%
Switzerland (EWL) -0.46% 1.83% 3.83% 5.86% 15.49%
U.K. (EWU) 1.00% 3.39% 1.64% 8.96% 20.83%
Emerging Markets
Emerging Markets (EEM) -0.54% -8.73% 3.06% 19.39% 34.04%
Brazil (EWZ) 2.81% 6.86% -8.92% 16.37% 41.84%
China (MCHI) -0.80% 1.34% -7.51% -10.23% -6.95%
India (INDA) -1.15% -3.41% -3.52% -10.79% -11.70%
Indonesia (EIDO) -0.24% 4.28% -20.04% -31.03% -25.84%
Malaysia (EWM) -0.21% 3.03% -2.52% 4.00% 20.49%
Mexico (EWW) 1.15% 0.99% -0.64% 12.26% 34.42%
South Africa (EZA) 1.12% -3.32% -9.79% -6.52% 21.72%
Taiwan (EWT) 1.09% -8.83% 17.97% 60.05% 81.14%
Thailand (THD) -0.86% 2.02% 6.05% 25.03% 35.45%

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Fixed Income

Fixed income markets weakened across the board as a surge in energy prices stoked inflation concerns and pushed Treasury yields higher. The U.S. Aggregate Bond index (AGG) declined by 0.16%, with longer-duration instruments seeing the largest price drops. The Long-Term Treasury ETF (SPTL) fell 0.31%, reflecting greater sensitivity to interest rate expectations. Even credit-focused funds like High Yield (HYG) ended the session in negative territory.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.09% 0.07% -0.21% 0.28% 2.68%
Core (AGG) -0.16% -0.73% -1.05% -0.35% 2.99%
Core Enhanced (IUSB) -0.20% -0.67% -0.92% -0.13% 3.24%
Long-Term (BLV) -0.28% -2.58% -2.53% -1.79% 1.98%
Government
Ultrashort (BIL) 0.02% 0.30% 0.90% 1.97% 3.78%
Short-Term (SPTS) -0.07% 0.17% 0.05% 0.58% 2.82%
Inflation Protected (TIP) -0.10% -0.11% -0.67% 0.67% 2.26%
Intermediate (SPTI) -0.14% -0.25% -1.11% -0.76% 1.92%
Long-Term (SPTL) -0.31% -2.42% -2.52% -2.04% 1.38%
Specialty
Preferred Stock (PFF) 0.43% -0.81% -2.05% 0.82% 3.15%
Convertible (CWB) 0.30% -5.73% 3.33% 17.42% 23.90%
Bank Loans (BKLN) -0.05% 0.63% 0.69% 0.60% 3.83%
Corporate (SPIB) -0.12% -0.28% -0.49% 0.18% 3.30%
High Yield (HYG) -0.16% -0.06% 0.27% 1.59% 4.74%
Mortgage Backed (MBB) -0.28% -0.81% -1.20% -0.09% 4.15%
International & EM
International USD (BNDX) -0.06% -0.75% -0.09% 0.29% 1.17%
International Local (IGOV) -0.07% -1.15% -2.83% -2.66% -3.85%
Emerging Local (EMLC) -0.08% -0.26% -0.30% 1.30% 6.64%
Emerging USD (EMB) -0.30% -0.95% -0.08% 1.36% 8.29%
Municipals
Short-Term (SUB) -0.07% -0.20% 0.11% 0.72% 2.22%
High Yield (HYD) -0.19% -0.98% 0.08% 1.31% 7.95%
Intermediate (MUB) -0.27% -1.08% -0.54% 0.44% 5.50%
Long-Term (MLN) -0.46% -0.97% -0.46% 1.53% 9.42%

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

Commodities

Commodities were the day’s undisputed leader, driven by a sharp rally in both energy and precious metals. The Broad Commodities index (DJP) rose 1.17% as escalating Middle East tensions sent WTI Crude oil (USO) up 2.20% to a six-week high. The risk-off tone also benefited precious metals, with Gold (GLD) gaining 1.15% and Silver (SLV) advancing 1.58%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 1.17% 8.36% 0.55% 28.85% 38.00%
Agriculture
Wheat (WEAT) 3.17% 14.29% 13.74% 30.20% 15.04%
Corn (CORN) 1.50% 9.00% 0.38% 3.10% 4.70%
Soybeans (SOYB) 1.01% 7.27% 6.53% 19.44% 19.33%
Broad (DBA) 0.28% 5.93% 4.05% 10.62% 12.60%
Sugar (CANE) -0.82% 5.77% 4.74% -0.36% -10.37%
Energy
WTI Crude (USO) 2.20% 16.85% 1.76% 90.40% 74.76%
Natural Gas (UNG) 1.92% -9.94% -3.20% -13.54% -26.75%
Brent Crude (BNO) 1.70% 19.25% 1.76% 81.57% 70.21%
Broad (DBE) 1.60% 16.78% 5.61% 80.93% 69.57%
Industrial Metals
Broad (DBB) 0.04% -1.23% -1.58% 8.67% 29.06%
Copper (CPER) -0.71% 1.13% 4.39% 12.27% 10.56%
Precious Metals
Silver (SLV) 1.58% -8.47% -23.38% -16.30% 50.95%
Broad (DBP) 1.17% -2.97% -15.53% -7.84% 23.01%
Gold (GLD) 1.15% -1.42% -12.90% -4.34% 19.94%
Palladium (PALL) 1.03% 2.75% -16.41% -19.11% 0.56%
Platinum (PPLT) 0.40% -1.98% -21.10% -20.18% 13.52%

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Cryptocurrency

Digital assets experienced a quiet and slightly negative session, largely detached from the volatility seen in energy and equity markets. Major cryptocurrencies posted modest declines as investors focused on traditional asset classes. Bitcoin (IBIT) traded down 0.88%, while Ethereum (ETHA) finished nearly unchanged. The asset class showed little reaction to the broader market’s geopolitical and inflation concerns.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
XRP (XRP) -1.63% 0.16% -21.10% -38.06%
Bitcoin (IBIT) -0.88% 2.30% -16.56% -24.79% -44.94%
Multi-Coin (NCIQ) -0.56% 3.25% -16.98% -27.69% -47.76%
Solana (SOLZ) -0.19% 6.93% -11.32% -38.19% -64.45%
Ethereum (ETHA) -0.07% 11.18% -19.91% -35.27% -47.79%

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What to Watch Today

Looking ahead to Thursday, market participants will be closely watching a series of economic data releases and a heavy schedule of corporate earnings. Key data points include the 8:30 AM ET release of Initial Jobless Claims and the Chicago Fed National Activity Index, followed by the Kansas City Fed Manufacturing Index at 11:00 AM ET. The U.S. Treasury is also scheduled to hold a 10-Year TIPS auction, while the earnings calendar features pre-market reports from Comcast and Honeywell, and an after-market release from Intel.

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.