Macro Overview
U.S. equity markets kicked off 2026 on a positive note, as the S&P 500 (IVV) rose +0.18% to close at 6,858.47 on Friday, January 2nd. The session was characterized by a rotation into mid-cap and value-oriented names following a lackluster end to 2025. However, market sentiment shifted significantly over the weekend due to a major geopolitical development: the U.S. military capture of Venezuelan President Nicolás Maduro. As the first full trading week of the year begins today, January 5th, investors are navigating a complex landscape of surging safe-haven assets and volatility in energy markets, juxtaposed against the AI-driven optimism that fueled Friday’s semiconductor jump.
U.S. Size & Style
Mid-cap stocks led the market on Friday, with the Mid Growth (IJK) climbing +1.56% and the Mid Cap (IJH) up +1.38%. Small-cap performance was also healthy, though growth lagged slightly behind value within the large-cap space, where the Large Growth (IVW) managed only a +0.06% gain.
| Name (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | +0.33% | -0.66% | 1.11% | 3.26% | 0.33% | 13.94% |
| Large Cap (IVV) | +0.18% | -1.02% | 0.55% | 2.40% | 0.18% | 18.31% |
| Large Growth (IVW) | +0.06% | -1.32% | 0.08% | 1.71% | 0.06% | 22.05% |
| Mid Value (IJJ) | +1.12% | -0.49% | 2.44% | 2.62% | 1.12% | 9.15% |
| Mid Cap (IJH) | +1.38% | -0.62% | 2.30% | 2.55% | 1.38% | 9.19% |
| Mid Growth (IJK) | +1.56% | -0.73% | 2.22% | 2.44% | 1.56% | 8.80% |
| Small Value (IJS) | +0.84% | -0.91% | 1.83% | 3.24% | 0.84% | 7.90% |
| Small Cap (IJR) | +0.99% | -1.43% | 1.39% | 2.01% | 0.99% | 7.17% |
| Small Growth (IJT) | +1.06% | -1.90% | 0.97% | 0.70% | 1.06% | 6.22% |
U.S. Sectors & Industries
Energy was the clear standout on Friday, with Energy (XLE) gaining +2.10%, bolstered by sub-sector strength in Oil & Gas Equipment & Services (XES), which rose +3.70%. Industrials (XLI) also saw strong gains of +1.84%, specifically in Aerospace & Defense (XAR) which jumped +3.80%. Conversely, Consumer Discretionary (XLY) lagged, falling -0.89% as Tesla and Microsoft weighed on the broader growth composite.
| Sector (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Energy (XLE) | +2.10% | 3.28% | 2.14% | 4.10% | 2.10% | 8.88% |
| Industrials (XLI) | +1.84% | 0.49% | 3.77% | 2.80% | 1.84% | 21.95% |
| Materials (XLB) | +1.70% | 0.02% | 4.91% | 3.34% | 1.70% | 13.04% |
| Utilities (XLU) | +1.15% | 0.94% | -1.00% | -1.01% | 1.15% | 16.44% |
| Health Care (XLV) | +0.46% | -0.35% | 1.17% | 9.06% | 0.46% | 14.99% |
| Financial (XLF) | +0.29% | -1.24% | 4.31% | 3.32% | 0.29% | 15.51% |
| Technology (XLK) | +0.23% | -1.52% | -0.09% | 1.00% | 0.23% | 25.18% |
| Real Estate (XLRE) | +0.07% | -0.35% | -0.42% | -2.61% | 0.07% | 3.64% |
| Consumer Staples (XLP) | +0.01% | -0.69% | -0.58% | 0.48% | 0.01% | 1.84% |
| Communication Services (XLC) | -0.70% | -0.91% | 1.78% | 0.71% | -0.70% | 21.62% |
| Consumer Discretionary (XLY) | -0.89% | -3.03% | 0.31% | -0.93% | -0.89% | 7.82% |
Global Thematic
Thematic performance showed massive divergence, driven by a surge in uranium and blockchain related themes. The Sprott Junior Uranium Miners ETF (URNJ) led all themes with a +12.58% gain, followed closely by crypto-proxies like Global X Blockchain ETF (BKCH) which rose +10.36%. On the downside, Cloud Computing suffered, with WisdomTree Cloud Computing Fund (WCLD) falling -3.32%.
| Name (Ticker) | 1-Day % Change |
|---|---|
| Sprott Junior Uranium Miners ETF (URNJ) | +12.58% |
| Global X Blockchain ETF (BKCH) | +10.36% |
| Sprott Uranium Miners ETF (URNM) | +10.13% |
| CoinShares Bitcoin Mining ETF (WGMI) | +9.88% |
| Schwab Crypto Thematic ETF (STCE) | +7.90% |
| ALPS Medical Breakthroughs ETF (SBIO) | -2.07% |
| WisdomTree Cybersecurity Fund (WCBR) | -2.24% |
| Global X Cybersecurity ETF (BUG) | -2.33% |
| Global X Cloud Computing ETF (CLOU) | -2.34% |
| WisdomTree Cloud Computing Fund (WCLD) | -3.32% |
Developed Markets ex-U.S.
International markets outperformed the U.S. on Friday, with the Dev ex-U.S. (EFA) rising +1.05%. South Korea (EWY) was the regional powerhouse, skyrocketing +5.14%, while Hong Kong (EWH) and the Netherlands (EWN) also posted significant gains of +2.92% and +2.82%, respectively.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | +1.05% | 0.49% | 3.96% | 4.79% | 1.05% | 33.39% |
| Australia (EWA) | +1.07% | -0.79% | 3.84% | -0.94% | 1.07% | 14.32% |
| Canada (EWC) | +0.48% | -1.11% | 4.86% | 8.08% | 0.48% | 36.41% |
| France (EWQ) | +0.71% | 0.29% | 2.48% | 1.72% | 0.71% | 31.03% |
| Germany (EWG) | +0.14% | -0.21% | 4.08% | 0.21% | 0.14% | 36.99% |
| Hong Kong (EWH) | +2.92% | -0.18% | 1.80% | 4.53% | 2.92% | 40.62% |
| Japan (EWJ) | +0.73% | 0.44% | 2.35% | 5.31% | 0.73% | 26.98% |
| Netherlands (EWN) | +2.82% | 2.59% | 3.95% | 2.31% | 2.82% | 38.99% |
| South Korea (EWY) | +5.14% | 6.66% | 13.55% | 25.16% | 5.14% | 104.51% |
| Switzerland (EWL) | +0.63% | -0.33% | 4.14% | 7.27% | 0.63% | 34.11% |
| U.K. (EWU) | +1.09% | 0.50% | 5.38% | 7.25% | 1.09% | 36.75% |
Emerging Markets
Emerging markets had a banner day, led by China’s resurgence. The Emerging (EEM) benchmark rose +2.80%, while China (MCHI) jumped +3.61% on fresh AI-led tech optimism. Taiwan (EWT) and Brazil (EWZ) also contributed to the positive sentiment with gains of +1.95% and +1.35% respectively.
| Country (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | +2.80% | 2.63% | 5.06% | 5.51% | 2.80% | 37.92% |
| Brazil (EWZ) | +1.35% | 1.82% | -1.98% | 10.31% | 1.35% | 49.55% |
| China (MCHI) | +3.61% | 1.58% | 1.23% | -5.95% | 3.61% | 38.24% |
| India (INDA) | +0.94% | 1.34% | 1.26% | 4.32% | 0.94% | 2.17% |
| Indonesia (EIDO) | +0.59% | 1.95% | 0.38% | 8.90% | 0.59% | 3.91% |
| Malaysia (EWM) | +0.22% | -0.80% | 4.44% | 6.04% | 0.22% | 16.92% |
| Mexico (EWW) | +0.48% | -2.09% | 3.35% | 6.15% | 0.48% | 51.51% |
| South Africa (EZA) | +0.87% | -1.29% | 10.10% | 14.02% | 0.87% | 75.00% |
| Taiwan (EWT) | +1.95% | 2.78% | 4.83% | 5.87% | 1.95% | 31.97% |
| Thailand (THD) | +0.40% | -1.54% | 0.94% | 1.99% | 0.40% | 4.46% |
Fixed Income
Fixed income markets were relatively stable on Friday, though convertible and preferred securities showed significant strength. Convertible (CWB) rose +1.51%, while Preferred Stock (PFF) gained +1.00%. Core bonds like Taxable Core (AGG) were slightly weaker, down -0.03%, as yields edged higher into the close.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | -0.03% | -0.19% | -0.01% | 0.55% | -0.03% | 7.15% |
| Taxable Core Enhanced (IUSB) | -0.02% | -0.21% | 0.03% | 0.66% | -0.02% | 7.36% |
| Taxable Multisector (PYLD) | +0.11% | 0.04% | 0.66% | 1.72% | 0.11% | 9.52% |
| Taxable Ultrashort (BIL) | +0.04% | 0.07% | 0.33% | 0.99% | 0.04% | 4.17% |
| Taxable Short-Term (BSV) | -0.01% | 0.01% | 0.29% | 0.97% | -0.01% | 5.99% |
| Taxable Long Term (BLV) | -0.19% | -0.69% | -1.03% | -1.12% | -0.19% | 6.10% |
| Government Short (SPTS) | -0.03% | 0.07% | 0.33% | 1.01% | -0.03% | 5.15% |
| Government Intermediate (SPTI) | -0.07% | -0.21% | -0.08% | 0.64% | -0.07% | 7.31% |
| Government Long (SPTL) | -0.19% | -0.64% | -1.26% | -1.14% | -0.19% | 5.04% |
| Inflation Protected (TIP) | -0.05% | -0.17% | -0.30% | -0.26% | -0.05% | 6.56% |
| Corporate (SPIB) | +0.03% | -0.12% | 0.28% | 0.90% | 0.03% | 7.94% |
| Taxable High Yield (HYG) | +0.05% | 0.09% | 0.54% | 1.13% | 0.05% | 8.39% |
| Bank Loans (BKLN) | +0.05% | 0.10% | 1.07% | 2.09% | 0.05% | 6.93% |
| Preferred Stock (PFF) | +1.00% | 0.68% | 1.64% | -0.13% | 1.00% | 4.65% |
| Convertible (CWB) | +1.51% | 0.14% | 1.16% | -1.10% | 1.51% | 18.21% |
| Mortgage Backed (MBS) | -0.08% | -0.23% | 0.24% | 0.97% | -0.08% | 8.39% |
| International USD (BNDX) | -0.02% | -0.23% | -0.27% | 0.16% | -0.02% | 2.76% |
| International (IGOV) | -0.14% | -0.66% | 0.26% | -0.99% | -0.14% | 10.47% |
| Emerging USD (EMB) | +0.02% | -0.25% | 0.27% | 2.43% | 0.02% | 13.50% |
| Emerging (EMLC) | +0.23% | 0.11% | 1.64% | 3.48% | 0.23% | 18.88% |
| Municipal Short (SUB) | +0.03% | 0.16% | 0.43% | 0.72% | 0.03% | 3.57% |
| Municipal Intermediate (MUB) | +0.12% | 0.33% | 0.67% | 1.63% | 0.12% | 3.78% |
| Municipal Long (MLN) | +0.34% | 0.10% | 1.02% | 1.79% | 0.34% | 2.33% |
| Municipal High Yield (HYD) | +0.08% | 0.18% | 1.04% | 1.93% | 0.08% | 3.11% |
Commodities
Commodity markets saw extreme volatility on Friday, particularly in precious and industrial metals. While Broad Commodities (DJP) edged up +0.16%, Silver (SLV) and Platinum (PPLT) jumped +2.06% and +4.33% respectively. Energy commodities were weaker, with Natural Gas (UNG) falling -1.63%.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | +0.16% | -3.06% | -0.40% | 6.26% | 0.16% | 16.34% |
| Energy (DBE) | -0.40% | -0.14% | -4.29% | -2.83% | -0.40% | -4.12% |
| WTI Crude Oil (USO) | -0.29% | 0.70% | -1.77% | -3.61% | -0.29% | -10.36% |
| Brent Crude Oil (BNO) | -0.25% | 0.57% | -2.01% | -3.25% | -0.25% | -7.80% |
| Natural Gas (UNG) | -1.63% | -5.85% | -19.39% | -10.33% | -1.63% | -29.10% |
| Gasoline (UGA) | -0.76% | -0.49% | -7.14% | -1.13% | -0.76% | -4.64% |
| Precious Metals (DBP) | +1.02% | -5.92% | 7.42% | 19.77% | 1.02% | 73.01% |
| Gold (GLD) | +0.50% | -4.43% | 2.85% | 12.26% | 0.50% | 62.29% |
| Silver (SLV) | +2.06% | -7.55% | 23.75% | 54.60% | 2.06% | 144.15% |
| Industrial Metals (DBB) | +0.31% | 0.61% | 7.97% | 13.30% | 0.31% | 26.52% |
| Agriculture (DBA) | +0.16% | -0.39% | 0.25% | -0.76% | 0.16% | -0.54% |
Cryptocurrency
The digital asset market roared back to life on Friday, with Solana (SOLZ) and Ethereum (ETHA) posting impressive gains of +5.49% and +5.13%. Bitcoin (IBIT) also rebounded, rising +2.60%. Sentiment has continued to improve this morning, with Bitcoin trading near $93,000 as investors digest the weekend’s geopolitical news.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Bitcoin (IBIT) | +2.60% | 2.68% | -1.41% | -25.93% | 2.60% | -8.00% |
| Multi-Coin (NCIQ) | +3.38% | 3.36% | -1.35% | -28.48% | 3.38% | — |
| Ethereum (ETHA) | +5.13% | 6.50% | 4.75% | -30.75% | 5.13% | -10.00% |
| Solana (SOLZ) | +5.49% | 7.26% | -5.84% | -45.24% | 5.49% | — |
What to Watch Today
The primary event today, January 5th, is the market’s first opportunity to react to the U.S. military operation in Venezuela. This weekend’s capture of President Maduro has already triggered a “dash for safety,” with Gold prices jumping over +2% to $4,420 and Silver rising +4%. In the oil market, crude prices are under pressure despite potential long-term infrastructure rebuilds, as investors weigh the immediate geopolitical shock against the prospect of increased Venezuelan output. Additionally, market participants are looking ahead to the December ISM Manufacturing PMI results (expected 48.3), which will provide critical data on the health of the U.S. industrial sector.
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.
