Macro Overview
U.S. equities advanced on Wednesday, with the S&P 500 (IVV) gaining 0.51% as a powerful rally in energy and technology stocks offset renewed pressure from rising bond yields. Market sentiment was buoyed by Nvidia’s continued leadership and a strategic partnership with Meta Platforms, fueling a 1.03% gain in the Technology sector (XLK). However, the day’s most distinct signal was the resurgence of the “reflation trade,” evidenced by a massive 4.85% surge in Oil (USO) and a 5.60% breakout in Silver (SLV). This commodity strength lifted Energy (XLE) to the top of the sector leaderboard (+1.92%) but weighed heavily on rate-sensitive corners of the market; Utilities and Real Estate both tumbled over 1.3% as Treasury yields ticked higher ahead of the Federal Reserve’s meeting minutes.
U.S. Size & Style
Performance was positive across the board for equities, though a notable rotation into value and smaller capitalization stocks emerged. Small Cap Value (IJS) claimed the top spot with a gain of 0.63%, narrowly edging out Large Cap Growth (IVW), which rose 0.62% on the back of semiconductor strength. Small Cap Growth (IJT) was the lone outlier, finishing effectively flat (-0.03%) as investors favored profitable, cyclical exposure over speculative growth in the face of rising yields.
| Name | 1 Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Large Value (IVE) | 0.37% | 1.73% | 7.53% | 4.22% | 13.70% |
| Large Cap (IVV) | 0.51% | -0.76% | 4.27% | 0.64% | 13.63% |
| Large Growth (IVW) | 0.62% | -3.06% | 1.33% | -2.53% | 13.15% |
| Mid Value (IJJ) | 0.38% | 2.76% | 14.22% | 8.39% | 12.51% |
| Mid Cap (IJH) | 0.42% | 2.30% | 13.95% | 8.59% | 12.71% |
| Mid Growth (IJK) | 0.56% | 1.88% | 13.68% | 8.76% | 12.64% |
| Small Value (IJS) | 0.63% | 2.86% | 17.32% | 10.27% | 16.37% |
| Small Cap (IJR) | 0.28% | 1.99% | 15.40% | 9.15% | 13.04% |
| Small Growth (IJT) | -0.03% | 1.13% | 13.62% | 8.00% | 9.74% |
U.S. Sectors & Industries
Sector dispersion was pronounced, largely dictated by the interplay between surging commodities and rising bond yields. Energy (XLE) rallied 1.92%, tracking crude oil’s sharp move higher, while Technology (XLK) added 1.03%, showing resilience to rate pressures thanks to idiosyncratic strength in mega-cap AI names. Conversely, bond proxies faced heavy selling pressure; Utilities (XLU) plunged 1.66% and Real Estate (XLRE) fell 1.34%, ranking as the day’s worst performers.
| Name | 1 Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Energy (XLE) | 1.92% | 14.87% | 21.33% | 22.52% | 24.01% |
| Technology (XLK) | 1.03% | -3.23% | 1.15% | -2.13% | 17.09% |
| Consumer Discretionary (XLY) | 0.84% | -4.32% | 4.45% | -2.00% | 4.27% |
| Financial (XLF) | 0.75% | -3.40% | 2.73% | -3.98% | 2.19% |
| Materials (XLB) | 0.61% | 8.92% | 24.63% | 16.91% | 18.84% |
| Health Care (XLV) | 0.19% | 1.24% | 3.77% | 1.85% | 11.01% |
| Communication Services (XLC) | 0.17% | -0.50% | 2.82% | -2.66% | 10.64% |
| Industrials (XLI) | -0.02% | 4.88% | 17.21% | 12.84% | 27.98% |
| Consumer Staples (XLP) | -0.18% | 7.22% | 15.11% | 13.34% | 11.80% |
| Real Estate (XLRE) | -1.34% | 2.70% | 7.32% | 7.43% | 6.20% |
| Utilities (XLU) | -1.66% | 5.12% | 3.01% | 6.84% | 17.50% |
Global Thematic
Thematic performance was heavily concentrated in materials and energy transition metals, mirroring the broader commodity breakout. Miners were the undisputed leaders, with Nickel (NIKL), Lithium (LITP), and Silver (SLVR) strategies all surging nearly 5% or more. On the other end of the spectrum, digital infrastructure and cannabis themes faltered, with Data Center ETFs (DTCR) shedding over 2%.
| Name | 1 Day |
|---|---|
| Leaders | |
| Sprott Nickel Miners ETF (NIKL) | 5.40% |
| Sprott Lithium Miners ETF (LITP) | 5.29% |
| Sprott Silver Miners & Physical Silver ETF (SLVR) | 4.92% |
| Sprott Junior Uranium Miners ETF (URNJ) | 4.69% |
| Sprott Uranium Miners ETF (URNM) | 4.50% |
| Laggards | |
| Global X Data Center And Digital Infrastructure ETF (DTCR) | -2.37% |
| AdvisorShares Pure US Cannabis ETF (MSOS) | -2.05% |
| Amplify Seymour Cannabis ETF (CNBS) | -1.67% |
| Pacer Data & Infrastructure Real Estate ETF (SRVR) | -1.50% |
| State Street SPDR S&P Global Infrastructure ETF (GII) | -1.20% |
Developed ex-U.S. & Emerging Markets
International markets generally tracked the U.S. higher, though country-specific drivers created notable dispersion. South Korea (EWY) outperformed significantly, gaining 1.72% amid strength in the tech-heavy Asian region, while Canada (EWC) rose 1.07%, benefiting directly from the surge in oil and metal prices. Japan (EWJ) was a notable laggard, falling 0.53%.
| Name | 1 Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Developed Markets | |||||
| South Korea (EWY) | 1.72% | 18.45% | 48.44% | 36.73% | 136.69% |
| Netherlands (EWN) | 1.14% | 1.66% | 15.40% | 10.36% | 34.74% |
| Canada (EWC) | 1.07% | 2.41% | 12.74% | 4.69% | 35.12% |
| U.K. (EWU) | 0.97% | 5.98% | 15.69% | 8.87% | 35.16% |
| Hong Kong (EWH) | 0.55% | 4.53% | 10.16% | 10.87% | 47.09% |
| Germany (EWG) | 0.18% | 1.80% | 11.61% | 3.81% | 21.54% |
| Dev ex-U.S. (EFA) | 0.12% | 4.83% | 14.48% | 8.65% | 30.97% |
| Australia (EWA) | -0.03% | 9.61% | 17.38% | 11.91% | 19.07% |
| France (EWQ) | -0.04% | 3.84% | 8.34% | 4.53% | 19.97% |
| Switzerland (EWL) | -0.28% | 6.20% | 13.57% | 7.17% | 27.62% |
| Japan (EWJ) | -0.53% | 6.90% | 17.41% | 13.18% | 36.39% |
| Emerging Markets | |||||
| South Africa (EZA) | 1.15% | 3.83% | 20.50% | 9.84% | 72.62% |
| Brazil (EWZ) | 0.77% | 14.65% | 20.44% | 19.70% | 52.00% |
| China (MCHI) | 0.56% | -2.51% | -1.15% | 1.46% | 15.39% |
| Emerging (EEM) | 0.53% | 5.74% | 14.86% | 11.84% | 40.22% |
| Thailand (THD) | 0.32% | 17.22% | 23.34% | 19.42% | 31.08% |
| Indonesia (EIDO) | 0.28% | -6.64% | -1.19% | -4.44% | 2.09% |
| Taiwan (EWT) | 0.12% | 8.38% | 21.82% | 14.87% | 43.58% |
| India (INDA) | 0.09% | 0.89% | -2.36% | -1.35% | 7.54% |
| Malaysia (EWM) | 0.07% | 5.32% | 15.22% | 8.44% | 27.88% |
| Mexico (EWW) | -0.76% | 8.31% | 22.56% | 15.61% | 56.31% |
Fixed Income
Bond markets remained under pressure as economic resilience and rebounding commodity prices pushed yields higher. The long end of the curve bore the brunt of the selling, with Long-Term Treasuries (SPTL) falling 0.37% and Long-Term Corporate bonds (BLV) dropping 0.24%. Credit risk outperformed duration risk on the day, as High Yield (HYG) and Convertibles (CWB) managed small gains.
| Name | 1 Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Multisector | |||||
| Taxable Short-Term (BSV) | -0.05% | 0.71% | 1.19% | 0.62% | 6.10% |
| Taxable Core Enhanced (IUSB) | -0.13% | 1.09% | 1.79% | 1.28% | 7.87% |
| Taxable Core (AGG) | -0.14% | 1.14% | 1.78% | 1.31% | 7.78% |
| Taxable Long Term (BLV) | -0.24% | 1.94% | 2.21% | 2.58% | 7.81% |
| Government | |||||
| Taxable Ultrashort (BIL) | 0.01% | 0.29% | 0.91% | 0.46% | 4.07% |
| Government Short (SPTS) | -0.03% | 0.49% | 1.03% | 0.45% | 5.19% |
| Inflation Protected (TIP) | -0.06% | 1.04% | 0.89% | 1.14% | 6.28% |
| Government Intermediate (SPTI) | -0.14% | 1.16% | 1.24% | 0.92% | 7.81% |
| Government Long (SPTL) | -0.37% | 2.24% | 1.83% | 2.74% | 6.93% |
| Specialty | |||||
| Convertible (CWB) | 0.14% | 1.18% | 8.15% | 6.50% | 18.43% |
| Taxable High Yield (HYG) | 0.12% | 0.27% | 2.45% | 0.84% | 7.59% |
| Bank Loans (BKLN) | 0.10% | -1.35% | 0.37% | -1.06% | 5.07% |
| Mortgage Backed (MBS) | -0.08% | 1.08% | 2.35% | 1.45% | 9.17% |
| Corporate (SPIB) | -0.09% | 0.92% | 1.81% | 0.98% | 8.02% |
| Preferred Stock (PFF) | -0.16% | 0.56% | 5.19% | 3.23% | 6.63% |
| International & EM | |||||
| Emerging USD (EMB) | 0.04% | 1.94% | 3.01% | 1.87% | 13.43% |
| International USD (BNDX) | 0.00% | 0.98% | 1.21% | 1.44% | 4.12% |
| Emerging (EMLC) | -0.30% | 2.44% | 4.96% | 2.87% | 17.97% |
| International (IGOV) | -0.70% | 2.79% | 3.16% | 2.42% | 11.08% |
| Municipals | |||||
| Municipal Short (SUB) | -0.01% | 0.44% | 1.41% | 0.87% | 4.01% |
| Municipal Intermediate (MUB) | -0.02% | 0.91% | 1.83% | 1.38% | 5.00% |
| Municipal High Yield (HYD) | -0.02% | 0.23% | 1.73% | 0.76% | 3.44% |
| Municipal Long (MLN) | -0.23% | 0.82% | 0.99% | 0.90% | 3.52% |
Commodities
Commodities staged an explosive rally, led by a coordinated surge in both energy and precious metals. Silver (SLV) soared 5.60% and Oil (USO) jumped 4.85%, reflecting heightened geopolitical risks and renewed inflation expectations. Broad commodities (DJP) advanced 2.40% on the day, while Agricultural softs largely missed the party, with Corn (CORN) and Soybeans (SOYB) closing slightly lower.
| Name | 1 Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Broad Commodities (DJP) | 2.40% | 4.77% | 10.08% | 9.12% | 15.76% |
| Agriculture | |||||
| Agriculture (DBA) | 0.51% | 0.94% | 1.39% | 1.25% | -5.68% |
| Corn (CORN) | -0.06% | 1.54% | -3.22% | -1.64% | -15.34% |
| Soybeans (SOYB) | -0.13% | 6.55% | -1.31% | 7.14% | 5.54% |
| Sugar (CANE) | 1.66% | -5.27% | -3.26% | -6.00% | -25.08% |
| Wheat (WEAT) | 1.78% | 3.83% | -2.36% | 5.86% | -20.68% |
| Energy | |||||
| WTI Crude Oil (USO) | 4.85% | 10.82% | 9.52% | 14.81% | 3.17% |
| Brent Crude Oil (BNO) | 4.69% | 11.49% | 11.94% | 17.48% | 7.08% |
| Energy (DBE) | 4.50% | 10.41% | 4.48% | 13.60% | 4.96% |
| Natural Gas (UNG) | -0.25% | 14.91% | -16.53% | -3.18% | -43.34% |
| Industrial Metals | |||||
| Industrial Metals (DBB) | 2.03% | -0.55% | 14.38% | 3.01% | 24.78% |
| Copper (CPER) | 1.83% | -1.00% | 15.52% | 1.77% | 23.37% |
| Precious Metals | |||||
| Silver (SLV) | 5.60% | -13.49% | 52.04% | 8.80% | 134.34% |
| Platinum (PPLT) | 3.47% | -9.56% | 35.32% | 1.52% | 110.25% |
| Precious Metals (DBP) | 2.75% | 2.56% | 26.85% | 13.10% | 75.72% |
| Gold (GLD) | 2.25% | 8.78% | 22.42% | 15.64% | 69.29% |
| Palladium (PALL) | 2.03% | -3.96% | 22.33% | 7.75% | 73.74% |
Cryptocurrency
Digital assets failed to participate in the broader “risk-on” sentiment seen in equities, retreating as yields climbed. Solana (SOLZ) led the decline, falling 4.38%, while Bitcoin (IBIT) showed slightly more resilience but still shed 2.21%. The sector’s negative reaction to rising real rates remains a key headwind.
| Name | 1 Day | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|
| Solana (SOLZ) | -4.38% | -44.22% | -43.10% | -34.93% | |
| XRP (XRP) | -4.21% | -31.78% | -22.47% | ||
| Ethereum (ETHA) | -2.79% | -41.20% | -37.98% | -34.77% | -26.48% |
| Multi-Coin (NCIQ) | -2.42% | -32.51% | -30.83% | -25.82% | -31.24% |
| Bitcoin (IBIT) | -2.21% | -30.79% | -28.71% | -24.39% | -29.84% |
What to Watch Today
Investors will be digesting yesterday afternoon’s release of the Federal Open Market Committee (FOMC) minutes, searching for clues on the central bank’s tolerance for the recent loosening in financial conditions. With commodity prices—specifically Oil and Silver—staging a dramatic breakout, the market’s inflation expectations are beginning to drift higher, potentially complicating the Fed’s path. Additionally, market participants will be watching to see if the rotation into Energy and Materials has durability, or if it was merely a short-term hedge against geopolitical headlines.
