Technology Stocks Lead Broad Market Rebound to End Volatile Month

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Macro Overview

U.S. equities rallied on the final day of the month, with the S&P 500 (IVV) gaining 0.63% to trim what was its first losing month after two consecutive gains. International markets also advanced, with Developed ex-U.S. (EFA) adding 0.42% and Emerging Markets (EEM) standing out with a strong 1.45% increase. In contrast, fixed income markets weakened as Treasury yields rose, sending the U.S. Aggregate Bond index (AGG) down 0.39%, while broad commodities (DJP) posted a 0.95% gain.

U.S. Size & Style

Growth stocks decisively outperformed their value counterparts across the market cap spectrum, fueled by a rebound in technology. Large Cap Growth (IVW) climbed 1.42% while Large Cap Value (IVE) finished nearly flat. Small caps also participated in the rally, with the Russell 2000 (IJR) gaining 0.64% to cap a strong month where it advanced 7.28%. The recent strength has pushed both Small Cap (IJR) and Small Cap Growth (IJT) into overbought territory, with RSI readings of 71 and 76, respectively.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.04% 0.01% 7.96% 7.88% 18.13%
Large Cap (IVV) 0.63% -1.21% 14.95% 9.92% 22.05%
Large Growth (IVW) 1.42% -1.93% 21.70% 11.77% 25.41%
Mid Value (IJJ) 0.30% 4.24% 11.89% 13.03% 21.64%
Mid Cap (IJH) 0.76% 3.62% 14.47% 17.39% 25.96%
Mid Growth (IJK) 1.34% 3.13% 16.91% 21.55% 29.93%
Small Value (IJS) 0.25% 5.00% 15.85% 20.88% 39.47%
Small Cap (IJR) 0.64% 7.28% 19.67% 23.97% 37.48%
Small Growth (IJT) 1.06% 9.51% 23.61% 26.91% 35.35%

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U.S. Sectors & Industries

Sector performance was highly divergent, with a clear rotation into cyclical growth and away from defensive areas. The Technology sector (XLK) led all groups with a 2.76% surge, driven by a significant rally in semiconductor stocks. On the other end of the spectrum, defensive sectors lagged, with Real Estate (XLRE), Consumer Staples (XLP), and Utilities (XLU) all declining by roughly 1.5% or more. The Energy sector (XLE) also finished lower by 0.88% as crude oil prices retreated.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) 0.78% -1.03% 15.12% 10.09% 22.20%
Technology (XLK) 2.76% -0.14% 43.53% 32.65% 51.25%
Industrials (XLI) 1.35% 7.25% 14.81% 20.04% 27.17%
Materials (XLB) 0.34% -0.25% 2.10% 13.00% 17.87%
Consumer Discretionary (XLY) 0.14% -2.77% 7.83% -1.39% 8.76%
Financials (XLF) -0.20% 4.30% 8.97% -1.28% 3.95%
Communication Services (XLC) -0.70% -7.15% -3.11% -8.47% -0.05%
Energy (XLE) -0.88% -4.98% -12.69% 20.41% 29.12%
Health Care (XLV) -1.29% 6.61% 8.69% 3.36% 19.76%
Utilities (XLU) -1.48% 2.72% -0.57% 7.62% 14.12%
Consumer Staples (XLP) -1.54% 0.89% 2.04% 8.29% 5.45%
Real Estate (XLRE) -1.98% 0.96% 8.77% 10.80% 9.94%

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Global Thematic

Thematic ETFs reflected the day’s risk-on sentiment, with advanced technology and industrial themes dominating the leaderboard. The Humanoid Robotics ETF (BOTT) and the REX Drone ETF (DRNZ) both gained around 6%, followed closely by funds focused on semiconductors and hydrogen. In sharp contrast, the day’s laggards were exclusively concentrated in the digital asset space. The First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) fell 4.46% amid a broad sell-off in crypto-related equities.

Name (Ticker) 1-Day
Leaders
Themes Humanoid Robotics ETF (BOTT) 6.25%
REX Drone ETF (DRNZ) 5.93%
Global X Hydrogen ETF (HYDR) 5.61%
Corgi Lithography & Semiconductor Photonics ETF (EUV) 5.54%
Defiance Drone and Modern Warfare ETF (JEDI) 5.10%
Laggards
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) -4.46%
Global X Blockchain ETF (BKCH) -3.52%
VanEck Digital Transformation ETF (DAPP) -2.52%
Bitwise Crypto Industry Innovators ETF (BITQ) -2.43%
Fidelity Crypto Industry and Digital Payments ETF (FDIG) -2.27%

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Developed ex-U.S. & Emerging Markets

International equities posted gains, with notable strength in several key Asian and European markets. Within developed markets, South Korea (EWY) and the Netherlands (EWN) were standout performers, rising 2.23% and 1.82% respectively. The broader Emerging Markets index (EEM) was propelled higher by significant advances in Taiwan (EWT), which jumped 2.67%, and Thailand (THD), which added 2.12%. Bucking the positive trend, Indonesia (EIDO) experienced a sharp decline of 2.92%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) 0.42% 0.68% 8.63% 9.88% 20.19%
Australia (EWA) 0.18% -2.36% 2.88% 9.04% 10.37%
Canada (EWC) 0.26% -1.53% 5.69% 7.38% 26.47%
France (EWQ) 0.58% 1.17% 7.21% 3.38% 9.22%
Germany (EWG) 1.08% -2.85% 6.36% -0.72% -0.28%
Hong Kong (EWH) -0.71% -8.03% -7.95% 0.02% 10.49%
Japan (EWJ) 0.06% 0.87% 11.05% 16.13% 29.81%
Netherlands (EWN) 1.82% 5.94% 23.49% 24.53% 35.30%
South Korea (EWY) 2.23% -1.91% 64.13% 107.67% 187.68%
Switzerland (EWL) -0.63% 1.32% 8.76% 6.67% 16.70%
U.K. (EWU) -0.02% -0.27% 2.73% 6.42% 20.12%
Emerging Markets
Emerging Markets (EEM) 1.45% 0.22% 21.07% 25.67% 44.58%
Brazil (EWZ) -0.14% -3.01% -9.27% 9.63% 25.06%
China (MCHI) 0.46% -6.79% -8.58% -14.50% -5.64%
India (INDA) 0.43% 1.71% 5.44% -8.62% -11.30%
Indonesia (EIDO) -2.92% -9.49% -27.09% -38.43% -34.07%
Malaysia (EWM) -0.30% -3.73% -3.18% 0.53% 14.80%
Mexico (EWW) -1.12% -2.62% 1.52% 10.16% 28.56%
South Africa (EZA) -0.36% -7.03% -4.83% -6.21% 26.65%
Taiwan (EWT) 2.67% 5.67% 53.14% 70.96% 97.93%
Thailand (THD) 2.12% 0.74% 6.66% 24.02% 48.62%

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Fixed Income

Fixed income assets broadly declined as the 10-year Treasury yield climbed, reflecting a shift in investor sentiment toward riskier assets. The core U.S. Aggregate Bond index (AGG) fell 0.39%, with longer-duration instruments seeing more pronounced losses, such as the Long-Term Treasury ETF (SPTL) which dropped 1.09%. One of the few areas to post a gain was Bank Loans (BKLN), which edged higher by 0.34%, benefiting from their floating-rate structure in a rising yield environment.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Short-Term (BSV) -0.14% 0.05% 0.38% 0.51% 2.98%
Core Enhanced (IUSB) -0.37% 0.26% 0.95% 0.89% 4.09%
Core (AGG) -0.39% 0.25% 0.72% 0.74% 3.79%
Long-Term (BLV) -0.96% 0.67% 1.45% 1.13% 3.91%
Government
Ultrashort (BIL) 0.00% 0.27% 0.88% 1.74% 3.83%
Short-Term (SPTS) -0.07% 0.12% 0.36% 0.65% 2.96%
Intermediate (SPTI) -0.28% 0.15% 0.02% 0.01% 2.50%
Inflation Protected (TIP) -0.43% -0.46% 0.81% 1.23% 3.22%
Long-Term (SPTL) -1.09% 1.09% 0.80% 0.81% 2.83%
Specialty
Convertible (CWB) 0.63% -0.12% 18.25% 21.63% 32.54%
Bank Loans (BKLN) 0.34% 0.01% 1.31% 0.02% 3.87%
High Yield (HYG) -0.05% 0.09% 2.05% 1.69% 5.15%
Corporate (SPIB) -0.27% 0.11% 0.88% 0.80% 4.14%
Preferred Stock (PFF) -0.39% -2.96% 1.93% 0.48% 4.98%
Mortgage Backed (MBB) -0.47% 0.07% 0.61% 1.02% 5.04%
International & EM
Emerging Local (EMLC) -0.12% 0.31% 3.48% 1.56% 7.23%
International USD (BNDX) -0.19% 0.44% 1.50% 1.38% 2.23%
International Local (IGOV) -0.30% -2.26% -0.07% -1.51% -3.45%
Emerging USD (EMB) -0.39% 0.43% 4.05% 2.37% 9.56%
Municipals
Short-Term (SUB) -0.02% 0.18% 0.61% 0.84% 2.68%
Intermediate (MUB) -0.08% 0.68% 2.20% 1.82% 6.35%
Long-Term (MLN) -0.17% 1.32% 2.89% 2.99% 9.29%
High Yield (HYD) -0.27% 0.55% 3.84% 2.56% 7.11%

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

Commodities

The commodities complex saw mixed results, with energy prices easing while some industrial and agricultural commodities gained. WTI Crude oil (USO) fell 0.60% following reports of easing geopolitical tensions between the United States and Iran. In contrast, Natural Gas (UNG) rallied 2.54%, and Silver (SLV) posted a solid 1.50% gain. Gold (GLD) ended the session nearly unchanged.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.95% -9.67% -9.20% 16.22% 28.63%
Agriculture
Corn (CORN) 1.70% -6.58% -8.97% -5.53% -5.35%
Wheat (WEAT) 1.01% -5.77% -6.53% 10.32% -0.77%
Soybeans (SOYB) 0.74% -2.98% 0.00% 11.62% 12.03%
Broad (DBA) 0.60% -2.13% -2.38% 4.51% 5.65%
Sugar (CANE) 0.00% 2.41% -6.23% 0.36% -10.63%
Energy
Natural Gas (UNG) 2.54% -1.76% -0.09% -4.40% -23.30%
Broad (DBE) 0.10% -12.80% -11.03% 50.13% 46.15%
Brent Crude (BNO) -0.39% -19.57% -21.76% 43.68% 39.40%
WTI Crude (USO) -0.60% -17.55% -16.35% 53.90% 45.59%
Industrial Metals
Copper (CPER) 1.34% -2.91% 9.58% 7.92% 19.25%
Broad (DBB) 0.50% -7.20% 2.55% 5.06% 27.79%
Precious Metals
Silver (SLV) 1.50% -21.75% -21.53% -17.00% 62.97%
Broad (DBP) 0.23% -14.05% -15.96% -10.05% 26.00%
Gold (GLD) -0.05% -11.68% -14.39% -7.05% 20.85%
Palladium (PALL) -0.27% -10.57% -18.05% -24.06% 9.73%
Platinum (PPLT) -1.40% -19.03% -20.72% -24.21% 15.00%

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Cryptocurrency

Cryptocurrency-related assets experienced a significant downturn, moving in the opposite direction of the technology sector’s rally. The weakness was widespread, with major digital assets leading the decline. Bitcoin (IBIT) fell 2.60%, while Ethereum (ETHA) and Solana (SOLZ) both dropped nearly 2.9%. This broad sell-off underscored the divergence between traditional tech stocks and the digital asset space during the session.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Solana (SOLZ) -2.89% -10.13% -11.23% -41.41% -57.22%
Ethereum (ETHA) -2.86% -21.78% -24.89% -46.99% -37.65%
XRP (XRP) -2.83% -21.00% -22.42% -43.18%
Multi-Coin (NCIQ) -2.65% -19.95% -15.21% -35.73% -46.74%
Bitcoin (IBIT) -2.60% -20.03% -13.35% -32.95% -45.61%

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What to Watch Today

Looking ahead to Wednesday, market participants will be closely watching a slate of key economic data for fresh insights into the labor market and manufacturing activity. The morning will feature the release of the ADP Employment Report for June, followed by the ISM Manufacturing Index and May’s Construction Spending figures. Additionally, investors will monitor remarks from Federal Reserve Chairman Kevin Warsh, who is scheduled to participate in a policy panel at the ECB Forum on Central Banking.

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.