Value Stocks Shine Amid Tech-Led Market Decline

Share

Macro Overview

U.S. equity indexes presented a mixed picture as a sharp technology sell-off pulled the S&P 500 (IVV) down 0.52%, despite underlying strength in defensive sectors. International markets faced broader pressure, with Developed ex-U.S. (EFA) equities falling 0.80% and Emerging Markets (EEM) declining a more significant 2.10%. Meanwhile, fixed income markets were largely unchanged, and broad commodities (DJP) retreated 1.20%.

U.S. Size & Style

A distinct rotation from growth to value defined the trading session across all market capitalizations. Large-Cap Growth (IVW) fell 1.66%, while its value counterpart, Large-Cap Value (IVE), gained 0.91%. This trend was even more pronounced in smaller stocks, with Mid-Cap Value (IJJ) and Small-Cap Value (IJS) advancing 1.45% and 1.38%, respectively. The positive performance in value and smaller-cap segments occurred even as broader large-cap indexes finished in the red.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Large Value (IVE) 0.91% 1.47% 6.70% 10.40% 20.19%
Large Cap (IVV) -0.52% 0.32% 7.33% 10.73% 21.71%
Large Growth (IVW) -1.66% -0.67% 7.75% 10.74% 22.66%
Mid Value (IJJ) 1.45% 2.20% 7.84% 14.23% 20.94%
Mid Cap (IJH) 0.48% 0.08% 6.56% 15.69% 22.57%
Mid Growth (IJK) -0.32% -1.95% 5.41% 17.02% 24.10%
Small Value (IJS) 1.38% 3.38% 10.80% 22.15% 37.49%
Small Cap (IJR) 0.68% 3.18% 11.24% 23.01% 33.64%
Small Growth (IJT) 0.05% 2.99% 11.69% 23.69% 29.98%

Explore the U.S. Size & Style Explorer →

U.S. Sectors & Industries

Defensive sectors led the market higher, underscoring a clear risk-off sentiment among investors. Consumer Staples (XLP) was the day’s top performer with a 2.80% gain, followed closely by Health Care (XLV), which rose 2.22% on the back of strong earnings reports. In stark contrast, the Technology (XLK) sector was the primary laggard, dropping 2.24% due to a significant sell-off in semiconductor stocks. Elsewhere, Financials (XLF) edged into overbought territory with an RSI of 72.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
S&P 500 (SPY) -0.54% 0.31% 7.26% 10.68% 21.59%
Consumer Staples (XLP) 2.80% 0.96% 6.12% 11.86% 9.77%
Health Care (XLV) 2.22% 6.26% 10.84% 5.41% 22.62%
Real Estate (XLRE) 2.02% 1.67% 4.66% 14.40% 12.58%
Energy (XLE) 0.92% 3.73% 1.50% 29.27% 36.50%
Materials (XLB) 0.77% -3.11% -1.29% 13.13% 15.93%
Utilities (XLU) 0.55% 1.55% -1.27% 7.93% 13.93%
Financials (XLF) 0.34% 4.78% 9.45% 4.51% 10.80%
Consumer Discretionary (XLY) 0.29% -0.74% -0.04% -1.34% 7.76%
Industrials (XLI) 0.05% 0.41% 6.02% 16.74% 21.30%
Communication Services (XLC) -0.64% 0.56% -4.95% -3.75% 7.30%
Technology (XLK) -2.24% -4.67% 16.91% 23.60% 37.95%

Explore the U.S. Sectors & Industries Explorer →

Global Thematic

The day’s thematic performance highlighted a preference for domestic and defensive industries over technology-centric strategies. Funds focused on U.S. Home Construction (ITB) and Water Resources (PHO) were among the top performers, gaining 2.30% and 2.37% respectively. Conversely, the laggards list was dominated by digital asset and semiconductor-related funds. The CoinShares Bitcoin Mining ETF (WGMI) and the Roundhill Memory ETF (DRAM) posted steep losses of 9.25% and 8.82%.

Name (Ticker) 1-Day
Leaders
Invesco Water Resources ETF (PHO) 2.37%
iShares U.S. Home Construction ETF (ITB) 2.30%
First Trust Water ETF (FIW) 2.18%
Global X Aging Population ETF (AGNG) 1.74%
State Street SPDR S&P Homebuilders ETF (XHB) 1.73%
Laggards
CoinShares Bitcoin Mining ETF (WGMI) -9.25%
Roundhill Memory ETF (DRAM) -8.82%
Global X Blockchain ETF (BKCH) -7.11%
Defiance Drone and Modern Warfare ETF (JEDI) -6.45%
VanEck Digital Transformation ETF (DAPP) -6.21%

Explore the Thematic Explorer →

Developed ex-U.S. & Emerging Markets

The technology sector’s weakness reverberated across global markets, hitting Asian tech hubs particularly hard. South Korea (EWY) plunged 4.82%, while Taiwan (EWT) fell 2.27%, reflecting the fallout from a disappointing forecast in the semiconductor industry. Most developed European markets also closed lower, though the U.K. (EWU) bucked the trend with a 0.43% gain following a positive GDP report. Emerging markets broadly underperformed, with notable weakness in Brazil (EWZ), which declined 1.53%.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Developed Markets ex-U.S.
Developed ex-U.S. (EFA) -0.80% -0.48% 2.36% 9.80% 21.48%
Australia (EWA) -0.59% -1.21% -2.99% 10.86% 12.77%
Canada (EWC) -0.17% 0.47% 2.89% 10.64% 29.55%
France (EWQ) -0.64% -2.08% 0.42% 2.81% 8.77%
Germany (EWG) -0.63% -1.27% -0.71% -1.04% -0.29%
Hong Kong (EWH) -0.14% 1.47% -4.22% 5.43% 14.79%
Japan (EWJ) -1.70% -2.35% 3.34% 14.44% 33.15%
Netherlands (EWN) -1.35% -1.97% 8.35% 19.94% 32.83%
South Korea (EWY) -4.82% -20.66% 10.78% 68.03% 128.62%
Switzerland (EWL) -0.57% 1.71% 4.90% 6.91% 17.51%
U.K. (EWU) 0.43% 0.99% -0.40% 8.34% 21.89%
Emerging Markets
Emerging Markets (EEM) -2.10% -6.48% 3.30% 17.92% 33.80%
Brazil (EWZ) -1.53% 2.67% -13.99% 12.27% 34.02%
China (MCHI) -0.02% 0.02% -7.15% -9.28% -2.38%
India (INDA) -0.06% -1.46% -2.62% -9.92% -11.91%
Indonesia (EIDO) 1.33% -3.87% -23.62% -33.75% -29.33%
Malaysia (EWM) 0.61% 0.25% -0.67% 4.45% 22.44%
Mexico (EWW) -0.23% -3.54% -3.40% 10.08% 30.17%
South Africa (EZA) -1.26% -7.50% -11.02% -6.58% 26.91%
Taiwan (EWT) -2.27% -3.50% 23.12% 57.66% 77.64%
Thailand (THD) 0.82% 0.47% 5.36% 25.08% 40.54%

Explore the Global (ex-U.S.) Size & Style Explorer →

Fixed Income

Fixed income markets were mostly quiet, with the U.S. Aggregate Bond (AGG) index finishing nearly unchanged. The stability in core government and investment-grade debt contrasted with weakness in more equity-sensitive corners of the bond market. Convertible Bonds (CWB) were a significant underperformer, falling 1.98% as the growth and technology stocks they are linked to experienced a sharp sell-off. High-yield bonds (HYG) also ended the day with a marginal loss.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Multisector
Core Enhanced (IUSB) 0.00% -0.45% -0.22% 0.42% 4.51%
Short-Term (BSV) -0.01% 0.07% 0.14% 0.58% 3.30%
Core (AGG) -0.01% -0.52% -0.36% 0.21% 4.29%
Long-Term (BLV) -0.01% -1.79% -1.00% -0.75% 4.61%
Government
Ultrashort (BIL) 0.01% 0.30% 0.90% 1.92% 3.80%
Short-Term (SPTS) -0.03% 0.13% 0.29% 0.79% 3.17%
Intermediate (SPTI) -0.04% -0.28% -0.58% -0.27% 3.04%
Long-Term (SPTL) -0.04% -1.69% -1.07% -1.08% 3.93%
Inflation Protected (TIP) -0.09% -0.67% -0.31% 0.85% 3.01%
Specialty
Bank Loans (BKLN) 0.00% 0.35% 1.11% 0.51% 3.83%
High Yield (HYG) -0.01% 0.17% 0.81% 1.94% 5.69%
Corporate (SPIB) -0.03% -0.13% 0.11% 0.60% 4.36%
Mortgage Backed (MBB) -0.07% -0.63% -0.51% 0.56% 5.62%
Preferred Stock (PFF) -0.82% -2.18% -1.75% 0.55% 3.21%
Convertible (CWB) -1.98% -7.17% 1.75% 14.64% 21.91%
International & EM
International USD (BNDX) -0.15% -0.54% 0.43% 0.62% 1.82%
Emerging USD (EMB) -0.15% -0.71% 0.89% 1.89% 9.83%
Emerging Local (EMLC) -0.35% -0.83% -0.18% 1.70% 7.74%
International Local (IGOV) -0.37% -2.09% -2.41% -1.95% -1.78%
Municipals
Short-Term (SUB) 0.00% -0.05% 0.25% 0.83% 2.33%
Long-Term (MLN) -0.11% -0.01% 1.03% 2.46% 9.86%
Intermediate (MUB) -0.13% -0.25% 0.46% 1.14% 6.45%
High Yield (HYD) -0.16% -0.25% 1.23% 2.08% 8.37%

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

Commodities

Commodities experienced a broad-based pullback, led by a sharp drop in precious metals. Silver (SLV) was the worst performer, declining 3.49%, while Gold (GLD) fell 1.98%. Energy markets also moved lower, with WTI Crude (USO) losing 1.71% despite reports of heightened geopolitical tensions. The weakness extended to industrial metals and agriculture, contributing to a 1.20% loss for the broad commodities basket (DJP).

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) -1.20% 1.74% -2.81% 23.08% 32.88%
Agriculture
Wheat (WEAT) 0.00% 9.54% 9.30% 24.79% 11.50%
Soybeans (SOYB) -0.71% 4.11% 3.72% 15.92% 16.87%
Corn (CORN) -0.96% 4.08% -1.95% -0.62% -0.03%
Broad (DBA) -1.39% 3.49% 1.77% 8.11% 10.43%
Sugar (CANE) -2.85% 1.06% 2.69% -2.31% -13.75%
Energy
Broad (DBE) -1.09% 6.25% 0.86% 68.39% 57.54%
Natural Gas (UNG) -1.23% -11.39% -3.34% -15.01% -34.05%
Brent Crude (BNO) -1.70% 6.58% -4.69% 65.18% 55.11%
WTI Crude (USO) -1.71% 3.32% -5.20% 72.50% 58.66%
Industrial Metals
Broad (DBB) -0.04% -3.53% -1.76% 7.15% 32.25%
Copper (CPER) -1.48% -3.77% 3.03% 8.87% 11.35%
Precious Metals
Gold (GLD) -1.98% -8.22% -17.07% -7.91% 18.39%
Broad (DBP) -2.19% -10.73% -19.93% -11.49% 21.66%
Platinum (PPLT) -3.29% -10.54% -22.80% -21.20% 13.88%
Silver (SLV) -3.49% -20.51% -29.27% -21.78% 46.44%
Palladium (PALL) -4.11% -6.88% -19.03% -21.28% 1.39%

Explore the Commodities Explorer →

Cryptocurrency

Digital assets declined in sympathy with the sell-off in technology stocks and other risk-oriented assets. The negative sentiment was felt across the complex, with Ethereum (ETHA) posting a loss of 2.69%. Bitcoin (IBIT) also traded lower, down 1.14% on the day. The move extended the recent underperformance of the asset class, reflecting the broader aversion to growth-sensitive investments.

Name (Ticker) 1-Day 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) -2.69% 4.36% -20.71% -37.00% -44.87%
Solana (SOLZ) -1.81% 2.66% -16.41% -39.74% -60.09%
Multi-Coin (NCIQ) -1.36% -1.84% -16.45% -29.61% -48.51%
XRP (XRP) -1.21% -10.12% -25.15% -40.25%
Bitcoin (IBIT) -1.14% -2.10% -14.84% -26.71% -46.35%

Explore the Digital Assets Explorer →

What to Watch Today

Looking ahead to Friday, market participants will monitor several key economic data releases, including the U.S. Import and Export Price Indexes at 8:30 AM ET and Industrial Production data at 9:15 AM ET. Federal Reserve Vice Chair Philip Jefferson is also scheduled to deliver remarks, which will be parsed for any clues on monetary policy. Additionally, traders will be managing positions around the standard monthly expiration of U.S. equity, index, and ETF options.

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.