Macro Overview
U.S. equities took a step back on Tuesday, with the S&P 500 (IVV) declining by -0.53% as the market paused its recent rally. The technology sector led the retreat following commentary from Federal Reserve Chair Jerome Powell, who noted that stock valuations appeared “fairly highly valued.” This cautious sentiment overshadowed positive momentum in other areas, most notably the Energy sector, which surged on the back of rising crude oil prices amid potential supply disruptions. The session highlighted a rotation away from high-growth names towards more value-oriented and cyclical industries.
U.S. Size & Style
Tuesday’s session revealed a clear divergence across market styles. Large Growth (IVW) was the hardest-hit category, falling -1.02%, while Large Value (IVE) managed to eke out a 0.04% gain. This trend suggests a defensive shift among investors, favoring companies with more stable earnings over high-growth stocks that are more sensitive to valuation concerns. Mid-caps and small-caps saw more mixed results, though value-oriented strategies generally outperformed their growth counterparts across the board.
| Ticker | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | +0.04% | 0.23% | 0.99% | 7.44% | 8.77% | 6.50% |
| Large Cap (IVV) | -0.53% | -0.06% | 3.09% | 10.88% | 14.27% | 17.95% |
| Large Growth (IVW) | -1.02% | -0.31% | 4.89% | 13.81% | 19.00% | 27.43% |
| Mid Value (IJJ) | +0.12% | 0.02% | -0.12% | 6.93% | 5.29% | 7.61% |
| Mid Cap (IJH) | -0.09% | -0.12% | 0.82% | 7.83% | 6.13% | 6.59% |
| Mid Growth (IJK) | -0.12% | -0.04% | 1.71% | 8.70% | 6.77% | 5.53% |
| Small Value (IJS) | -0.26% | -0.23% | 1.38% | 13.34% | 3.23% | 5.20% |
| Small Cap (IJR) | -0.20% | 0.06% | 1.08% | 11.36% | 4.66% | 4.56% |
| Small Growth (IJT) | -0.09% | 0.34% | 0.78% | 9.39% | 6.04% | 3.65% |
U.S. Sectors & Industries
The Energy sector (XLE) was the standout performer, gaining 1.72% as oil prices climbed. Strength was concentrated in Oil & Gas Equipment & Services and Exploration & Production industries. On the other end of the spectrum, Consumer Discretionary (XLY) and Technology (XLK) were the primary laggards, falling -0.94% and -0.86% respectively, as investors shed exposure to growth-oriented areas of the market. Defensive sectors like Real Estate and Utilities posted modest gains.
| Sector | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Energy (XLE) | +1.72% | 1.61% | 2.04% | 4.55% | 6.69% | 3.40% |
| Real Estate (XLRE) | +0.79% | 1.12% | -0.05% | 0.62% | 5.65% | -3.20% |
| Utilities (XLU) | +0.52% | 1.48% | 0.20% | 6.12% | 15.50% | 9.72% |
| Consumer Staples (XLP) | +0.50% | -0.61% | -4.34% | -3.08% | 1.57% | -3.17% |
| Health Care (XLV) | +0.23% | 0.20% | -0.44% | 4.09% | 0.86% | -9.73% |
| Industrials (XLI) | +0.03% | 0.36% | 0.35% | 6.82% | 17.33% | 16.26% |
| Communication Services (XLC) | -0.14% | -0.49% | 6.75% | 14.37% | 23.39% | 34.83% |
| Materials (XLB) | -0.32% | -0.36% | -1.81% | 4.10% | 8.62% | -2.75% |
| Financials (XLF) | -0.44% | -0.58% | 0.69% | 6.13% | 12.38% | 20.04% |
| Technology (XLK) | -0.86% | 0.59% | 6.92% | 15.52% | 21.07% | 26.96% |
| Consumer Discretionary (XLY) | -0.94% | -1.26% | 2.25% | 11.17% | 6.74% | 20.77% |
Global Thematic
Thematic strategies saw wide performance dispersion. Industrial themes like 3D Printing (PRNT) posted strong gains of 1.55%, while clean energy-related funds like Hydrogen (HYDR) and Solar (TAN) experienced significant losses of -3.95% and -3.46%, respectively. This highlights the risk-off sentiment in more speculative growth themes.
| Top 5 Performers | ||
|---|---|---|
| Ticker | Name | 1-Day % Change |
| PRNT | 3D Printing ETF | +1.55% |
| CNBS | Amplify Seymour Cannabis ETF | +1.45% |
| TPYP | Tortoise North American Pipeline Fund | +1.39% |
| MLPX | Global X MLP & Energy Infrastructure ETF | +1.34% |
| ARKX | ARK Space Exploration & Innovation ETF | +1.32% |
| Bottom 5 Performers | ||
| Ticker | Name | 1-Day % Change |
| HYDR | Global X Hydrogen ETF | -3.95% |
| TAN | Invesco Solar ETF | -3.46% |
| DAPP | VanEck Digital Transformation ETF | -3.29% |
| CNRG | SPDR S&P Kensho Clean Power ETF | -3.03% |
| BKCH | Global X Blockchain ETF | -2.93% |
Developed Markets ex-U.S.
Developed international markets were slightly down, with the broad EFA ETF declining -0.19%. European markets were mixed, with the Netherlands (EWN) gaining 0.45% while Germany (EWG) posted a modest 0.07% gain. Meanwhile, Hong Kong (EWH) was a notable laggard, falling -0.94%.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | -0.19% | 0.13% | -0.12% | 7.06% | 25.28% | 16.29% |
| Australia (EWA) | -0.19% | -0.07% | -1.43% | 4.19% | 14.33% | 4.08% |
| Canada (EWC) | -0.69% | -0.39% | 5.21% | 11.47% | 26.22% | 24.67% |
| France (EWQ) | +0.25% | 0.48% | -0.66% | 5.58% | 25.09% | 14.07% |
| Germany (EWG) | +0.07% | 0.12% | -3.26% | 1.28% | 31.84% | 27.98% |
| Hong Kong (EWH) | -0.94% | -1.35% | -1.40% | 9.34% | 29.84% | 30.40% |
| Japan (EWJ) | -0.20% | 0.37% | 1.34% | 12.59% | 21.83% | 15.80% |
| Netherlands (EWN) | +0.45% | 1.37% | 6.33% | 8.66% | 31.24% | 19.03% |
| South Korea (EWY) | -0.13% | 1.75% | 10.80% | 17.33% | 60.05% | 30.98% |
| Switzerland (EWL) | -0.59% | -0.04% | -0.72% | 3.33% | 22.48% | 10.25% |
| U.K. (EWU) | -0.34% | 0.27% | -1.45% | 5.87% | 24.83% | 15.59% |
Emerging Markets
Emerging markets ended the day nearly flat, with the EEM ETF up just 0.06%. However, this masks significant regional differences. Latin America showed considerable strength, with Brazil (EWZ) jumping 1.72%. In contrast, Asian markets were weaker, as China (MCHI) fell -1.20% and India (INDA) dropped -0.82%.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | +0.06% | 0.55% | 5.27% | 14.11% | 28.67% | 24.28% |
| Brazil (EWZ) | +1.72% | 1.26% | 9.47% | 13.23% | 41.67% | 15.01% |
| China (MCHI) | -1.20% | -1.21% | 3.39% | 17.61% | 37.17% | 51.32% |
| India (INDA) | -0.82% | -1.63% | -0.97% | -2.30% | 0.80% | -9.65% |
| Indonesia (EIDO) | +0.17% | -0.17% | -4.77% | 5.15% | -1.31% | -20.87% |
| Malaysia (EWM) | -0.19% | 0.59% | 0.08% | 9.39% | 7.16% | -0.19% |
| Mexico (EWW) | +0.79% | 2.01% | 7.37% | 16.38% | 46.63% | 30.58% |
| South Africa (EZA) | +0.66% | 0.53% | 6.92% | 20.10% | 51.78% | 35.61% |
| Taiwan (EWT) | +0.42% | 1.44% | 7.76% | 16.51% | 24.21% | 24.05% |
| Thailand (THD) | -1.17% | -1.69% | 2.67% | 23.22% | 1.44% | -8.67% |
Fixed Income
Fixed income markets saw a flight to quality as equities stumbled. Long-duration government bonds (SPTL) were the top performers, rising 0.60% as investors sought safety. Conversely, credit-sensitive assets like High Yield bonds (HYG) and Convertible bonds (CWB) declined by -0.07% and -0.47% respectively, reflecting the broader risk-off tone.
| Ticker | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.16% | 0.04% | 1.27% | 2.95% | 6.27% | 2.81% |
| Taxable Core Enhanced (IUSB) | +0.19% | 0.06% | 1.26% | 3.01% | 6.37% | 3.29% |
| Taxable Multisector (PYLD) | +0.07% | -0.04% | 1.43% | 3.49% | 7.64% | 6.95% |
| Taxable Ultrashort (BIL) | +0.00% | 0.01% | 0.35% | 1.07% | 3.07% | 4.36% |
| Taxable Short-Term (BSV) | +0.06% | 0.00% | 0.55% | 1.72% | 4.82% | 4.06% |
| Taxable Long Term (BLV) | +0.45% | 0.13% | 2.70% | 4.80% | 6.89% | -1.65% |
| Government Short (SPTS) | +0.03% | 0.03% | 0.51% | 1.42% | 3.87% | 3.90% |
| Government Intermediate (SPTI) | +0.21% | 0.10% | 0.88% | 2.26% | 6.56% | 3.30% |
| Government Long (SPTL) | +0.60% | 0.26% | 2.76% | 3.94% | 5.71% | -4.02% |
| Inflation Protected (TIP) | +0.27% | 0.03% | 0.88% | 2.90% | 7.09% | 3.75% |
| Corporate (SPIB) | +0.06% | -0.03% | 0.97% | 2.88% | 6.75% | 5.17% |
| Taxable High Yield (HYG) | -0.07% | 0.00% | 3.13% | 0.99% | 7.37% | 7.50% |
| Bank Loans (BKLN) | +0.00% | 0.07% | 0.79% | 2.31% | 4.74% | 7.39% |
| Preferred Stock (PFF) | -0.12% | -0.28% | 1.53% | 7.23% | 6.52% | 2.21% |
| Convertible (CWB) | -0.47% | -0.08% | 5.28% | 12.17% | 17.44% | 21.95% |
| Mortgage Backed (MBS) | +0.33% | 0.13% | 1.67% | 3.54% | 6.95% | 3.40% |
| International USD (BNDX) | -0.02% | -0.02% | 0.43% | 0.49% | 2.40% | 2.67% |
| International (IGOV) | +0.16% | 0.40% | 0.80% | 0.78% | 11.19% | 2.87% |
| Emerging USD (EMB) | +0.39% | 0.61% | 1.87% | 5.90% | 11.18% | 8.33% |
| Emerging (EMLC) | +0.00% | 0.12% | 1.48% | 4.71% | 15.60% | 8.13% |
| Municipal Short (SUB) | +0.02% | -0.01% | 0.31% | 1.46% | 3.13% | 3.23% |
| Municipal Intermediate (MUB) | -0.05% | -0.04% | 2.39% | 3.08% | 2.03% | 1.29% |
| Municipal Long (MLN) | +0.03% | 0.03% | 4.33% | 4.32% | 0.21% | -0.49% |
| Municipal High Yield (HYD) | -0.12% | -0.27% | 3.33% | 2.76% | 0.70% | 0.37% |
Commodities
Commodities had a strong session, led by a 1.70% gain in the broad Energy complex (DBE). WTI Crude Oil (USO) itself rallied 2.18%. Precious metals also continued their ascent, with Platinum (PPLT) surging 3.84% and Gold (GLD) adding 0.41% amid ongoing demand for safe-haven assets. Agriculture was a soft spot, with the broad basket (DBA) down -0.15%.
| Commodity | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | +0.68% | 0.76% | 2.68% | -0.08% | 8.89% | 9.81% |
| Energy (DBE) | +1.70% | 1.38% | 1.06% | -1.39% | 3.18% | 7.99% |
| Precious Metals (DBP) | +0.31% | 2.17% | 11.60% | 12.90% | 42.16% | 41.70% |
| Industrial Metals (DBB) | -0.15% | -0.69% | 2.14% | 4.97% | 6.42% | 5.63% |
| Agriculture (DBA) | -0.15% | -0.59% | -2.83% | 1.25% | 0.83% | 7.56% |
Cryptocurrency
The cryptocurrency market was mostly negative on Tuesday. Solana (SOLZ) was the weakest performer among the major assets, with a decline of -1.08%. Bitcoin (IBIT) also edged lower by -0.38%. Ethereum (ETHA) was a notable exception, managing a small gain of 0.38% against the broader downtrend in digital assets.
| Asset | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Solana (SOLZ) | -1.08% | -9.32% | 5.67% | 46.65% | ||
| Multi-Coin (NCIQ) | -0.68% | -3.83% | -6.31% | 16.08% | ||
| Bitcoin (IBIT) | -0.38% | -3.00% | -4.29% | 8.08% | 19.53% | 75.94% |
| Ethereum (ETHA) | +0.38% | -6.43% | -14.16% | 79.28% | 24.20% | 54.88% |
What to Watch Today
Investors today will be closely watching the release of New Home Sales data for August, scheduled for 10:00 AM ET. This report is a key barometer for the health of the U.S. housing market and provides insight into consumer confidence and spending. A stronger-than-expected number could signal economic resilience, while a weaker figure may amplify concerns about a slowdown. The data will be an important input for the Federal Reserve as it weighs its next move on interest rates.
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.
