Trade Turbulence: Defensives and Hard Assets Shine as Equities Retreat

Share

Macro Overview

U.S. equity markets faced broad-based selling pressure on Monday as investors grappled with fresh trade policy uncertainty and the lingering effects of a k-shaped recovery. The S&P 500 (IVV) declined 1.01% in a session marked by sector rotation, with defensive pockets like Utilities and Consumer Staples finding relative safety. While the Supreme Court’s ruling against broad tariffs provided a temporary psychological lift, the pivot toward smaller-scale executive trade actions kept volatility high, particularly in international markets where the Developed ex-U.S. (EFA) fell 0.41%. Fixed income markets offered a reprieve as yields softened, with the Total Bond Market (AGG) rising 0.20%, while commodities saw a sharp split as Precious Metals (DBP) surged 3.01% amid a flight to quality.

U.S. Size & Style

Growth-oriented segments led the decline on Monday as the “AI fatigue” narrative continued to weigh on mega-cap valuations. Large Cap Growth (IVW) fell 1.22%, with its RSI dropping to a relatively weak 42.64, signaling a loss of technical momentum. In contrast, Small Cap Value (IJS) was the day’s laggard with a 2.57% drop, though it remains well-supported above its 200-day moving average with a healthy 11.54% cushion. Breadth remains a concern for the broader market, as only 46.7% of Large Growth constituents are currently trading above their 50-day moving average.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.80% 1.42% 6.94% 3.47% 13.65%
Large Cap (IVV) -1.01% -0.98% 3.87% 0.08% 15.17%
Large Growth (IVW) -1.22% -3.14% 1.08% -2.94% 16.19%
Mid Growth (IJK) -1.53% 2.19% 12.57% 8.32% 18.04%
Mid Cap (IJH) -1.72% 1.77% 11.70% 7.38% 15.93%
Mid Value (IJJ) -1.96% 1.31% 10.59% 6.32% 13.56%
Small Growth (IJT) -1.53% 0.67% 10.27% 6.84% 14.15%
Small Cap (IJR) -2.01% 0.70% 12.12% 7.33% 15.93%
Small Value (IJS) -2.57% 0.75% 13.84% 7.73% 17.63%

U.S. Sectors & Industries

Defensive sectors dominated the leaderboard on Monday, with Consumer Staples (XLP) and Health Care (XLV) posting solid gains. Energy (XLE) remained overbought with an RSI of 70.49, reflecting its massive 23.35% YTD run. On the laggard side, Financials (XLF) plummeted 3.35%, hitting a technical air pocket that now leaves it 10.05% below its 52-week high. Utilities (XLU) currently boasts the strongest breadth, with 96.77% of its constituents trading above their 50-day moving average.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Consumer Staples (XLP) 1.23% 7.31% 15.13% 14.53% 11.22%
Health Care (XLV) 1.10% 0.67% 2.98% 2.42% 10.17%
Utilities (XLU) 0.76% 9.68% 6.70% 9.35% 19.61%
Energy (XLE) 0.49% 12.12% 24.39% 23.35% 25.36%
Real Estate (XLRE) 0.11% 5.72% 7.78% 8.08% 6.79%
Materials (XLB) 0.00% 5.98% 23.29% 16.78% 22.64%
Communication Services (XLC) -1.23% -1.37% 3.42% -2.00% 13.33%
Industrials (XLI) -1.35% 6.46% 17.24% 12.71% 31.42%
Technology (XLK) -1.68% -4.53% 1.56% -3.79% 18.68%
Consumer Discretionary (XLY) -2.09% -6.61% 2.19% -3.70% 6.20%
Financial (XLF) -3.35% -4.41% -1.48% -7.38% 1.34%

Global Thematic

Gold and Lithium miners surged on Monday, with the Sprott Gold Miners ETF (SGDM) leading all themes with a 4.20% gain. The flight to hard assets was evident as the Sprott Silver Miners (SLVR) also jumped 4.14%. Conversely, high-beta tech themes were decimated; Cloud Computing (WCLD) crashed 7.26%, signaling a sharp technical breakdown in software sentiment. Cybersecurity and innovation-focused funds like WCBR and GPZ also suffered significant daily losses exceeding 5.5%.

Name (Ticker) 1-Day % Change
Top 5 Leaders
Sprott Gold Miners ETF (SGDM) 4.20%
Sprott Silver Miners & Physical Silver ETF (SLVR) 4.14%
Sprott Lithium Miners ETF (LITP) 3.84%
VanEck Gold Miners ETF (GDX) 3.79%
U.S. Global GO GOLD Miners ETF (GOAU) 3.79%
Bottom 5 Laggards
WisdomTree Cloud Computing Fund (WCLD) -7.26%
WisdomTree Cybersecurity Fund (WCBR) -5.72%
VanEck Alternative Asset Manager ETF (GPZ) -5.58%
First Trust Cloud Computing ETF (SKYY) -5.15%
Global X Cybersecurity ETF (BUG) -4.97%

Developed ex-U.S. & Emerging Markets

International markets were dominated by a massive divergence in South Korean equities; despite a 1.82% daily decline in the MSCI South Korea ETF (EWY), the segment remains an extreme technical outlier with a 147.39% 1-year return and an RSI of 71.71. Developed markets like the U.K. (EWU) and Switzerland (EWL) traded defensively, remaining within 0.35% of their 52-week highs. Emerging Markets (EEM) overall fell 1.11%, pressured by a 2.08% slide in Mexico (EWW) as trade concerns localized.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Developed ex-U.S. Countries
Hong Kong (EWH) 0.08% 5.08% 13.14% 11.91% 45.87%
Japan (EWJ) -0.09% 8.08% 16.83% 13.19% 38.39%
Switzerland (EWL) -0.11% 5.65% 13.44% 7.25% 26.95%
U.K. (EWU) -0.31% 5.09% 16.07% 8.89% 37.01%
Netherlands (EWN) -0.36% 0.99% 16.88% 10.38% 37.50%
Canada (EWC) -0.37% 2.12% 13.94% 5.60% 39.22%
France (EWQ) -0.40% 4.35% 9.25% 5.56% 22.70%
Dev ex-U.S. (EFA) -0.41% 4.50% 14.81% 8.79% 32.70%
Australia (EWA) -0.84% 7.56% 18.26% 12.45% 23.88%
Germany (EWG) -0.95% 0.97% 11.42% 3.29% 24.27%
Emerging Markets Countries
South Africa (EZA) 0.83% 2.03% 26.69% 13.21% 78.49%
Indonesia (EIDO) 0.28% -4.73% -0.46% -3.16% 6.69%
Thailand (THD) 0.04% 13.42% 26.88% 21.38% 34.40%
Malaysia (EWM) -0.40% 4.27% 15.96% 9.69% 28.49%
China (MCHI) -0.41% -3.16% 0.97% 1.15% 11.36%
Emerging (EEM) -1.11% 4.37% 17.77% 12.69% 40.62%
Brazil (EWZ) -1.52% 5.96% 25.39% 22.03% 60.56%
India (INDA) -1.52% 2.67% -2.95% -2.66% 6.71%
Taiwan (EWT) -1.61% 4.98% 23.87% 15.19% 44.57%
Mexico (EWW) -2.08% 4.55% 22.78% 14.73% 58.79%
South Korea (EWY) -1.82% 18.08% 59.68% 43.28% 147.39%

Fixed Income

Bonds experienced a duration-led rally on Monday as the 10-year Treasury yield retreated from key psychological levels. Government Long (SPTL) led the sovereign space with a 0.37% gain, while core aggregate bonds (AGG) rose 0.20%, maintaining a positive 1.55% YTD return. Credit-sensitive segments were the primary laggards, with Bank Loans (BKLN) dropping 0.72% and Preferred Stocks (PFF) falling 0.63%, reflecting a cautious risk-off tone across the capital structure.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Multisector
Taxable Core (AGG) 0.20% 1.32% 1.65% 1.55% 7.26%
Taxable Core Enhanced (IUSB) 0.19% 1.26% 1.70% 1.54% 7.48%
Taxable Long Term (BLV) 0.18% 1.92% 1.87% 2.73% 6.71%
Taxable Short-Term (BSV) 0.15% 0.83% 1.18% 0.81% 5.99%
Government
Government Long (SPTL) 0.37% 2.43% 1.64% 3.01% 5.53%
Government Intermediate (SPTI) 0.31% 1.51% 1.20% 1.26% 7.37%
Government Short (SPTS) 0.10% 0.59% 0.99% 0.59% 5.04%
Inflation Protected (TIP) 0.09% 0.96% 0.85% 1.26% 5.76%
Government Ultrashort (BIL) 0.00% 0.27% 0.90% 0.50% 4.03%
Specialty
Mortgage Backed (MBS) 0.22% 1.41% 2.20% 1.76% 8.48%
Corporate (SPIB) 0.18% 1.07% 1.72% 1.22% 7.85%
Taxable High Yield (HYG) -0.16% 0.16% 2.07% 0.79% 7.59%
Convertible (CWB) -0.54% 0.35% 9.00% 5.62% 19.97%
Preferred Stock (PFF) -0.63% -0.73% 4.78% 2.32% 6.06%
Bank Loans (BKLN) -0.72% -1.87% -0.54% -1.92% 4.36%
International & EM
International USD (BNDX) 0.18% 1.51% 1.44% 1.79% 4.17%
International (IGOV) 0.13% 1.61% 3.99% 2.78% 10.90%
Emerging USD (EMB) 0.06% 1.46% 2.86% 1.92% 13.22%
Emerging (EMLC) 0.04% 1.15% 5.61% 3.03% 18.00%
Municipals
Municipal Long (MLN) 0.15% 1.39% 1.85% 1.33% 3.11%
Municipal High Yield (HYD) 0.14% 0.76% 1.75% 0.84% 2.88%
Municipal Short (SUB) 0.05% 0.49% 1.41% 0.90% 3.84%
Municipal Intermediate (MUB) -0.03% 1.10% 2.07% 1.57% 4.62%

Commodities

Hard assets were the day’s clear standout, with Precious Metals (DBP) surging 3.01% as Silver (SLV) jumped 5.16% in a high-velocity momentum move. Gold (GLD) followed with a 2.70% rise, extending its massive 77.76% 1-year gain. Energy was more tempered as the broad complex (DBE) rose only 0.25%, pinned down by a 2.25% crash in Natural Gas (UNG). Industrial Metals (DBB) slipped 0.55%, reflecting cooling global manufacturing demand expectations.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 0.33% 0.96% 14.84% 11.75% 19.13%
Agriculture
Broad-based (DBA) -0.23% 0.89% 3.95% 1.76% -2.35%
Corn (CORN) 0.00% 1.15% 0.11% -0.62% -12.93%
Soybeans (SOYB) -0.09% 5.39% 0.38% 7.37% 5.58%
Wheat (WEAT) -1.17% 5.59% 4.58% 9.71% -16.21%
Sugar (CANE) 1.21% -2.15% -1.64% -4.25% -26.31%
Energy
Broad-based (DBE) 0.25% 7.44% 11.56% 15.72% 7.68%
Gasoline (UGA) 0.43% 8.01% 9.93% 16.02% 12.95%
WTI Crude Oil (USO) 0.06% 9.40% 16.74% 16.98% 7.37%
Brent Crude Oil (BNO) 0.03% 10.43% 18.83% 19.67% 11.37%
Natural Gas (UNG) -2.25% -15.96% -19.86% -4.24% -46.85%
Industrial Metals
Broad-based (DBB) -0.55% -2.43% 14.18% 3.27% 24.46%
Copper (CPER) -1.35% -2.30% 14.84% 2.06% 24.76%
Precious Metals
Broad-based (DBP) 3.01% -1.06% 36.78% 21.17% 89.12%
Gold (GLD) 2.70% 5.08% 28.59% 21.44% 77.76%
Silver (SLV) 5.16% -13.28% 77.86% 25.07% 172.29%
Platinum (PPLT) 0.44% -21.76% 43.09% 5.86% 122.53%
Palladium (PALL) -0.04% -13.64% 27.94% 9.74% 79.89%

Cryptocurrency

The digital asset ecosystem saw uniform selling pressure on Monday as risk appetite evaporated across global markets. Solana (SOLZ) led the declines with a sharp 7.67% drop, while Ethereum (ETHA) followed with a 5.64% slide. Bitcoin (IBIT) fell 4.87%, now sitting down 26.38% YTD as the asset class enters a deeper consolidation phase amid broader macro instability and tariff-related concerns.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Solana (SOLZ) -7.67% -38.47% -39.11% -37.32%
Ethereum (ETHA) -5.64% -36.71% -32.13% -37.36% -29.29%
Multi-Coin (NCIQ) -4.95% -29.68% -26.04% -28.13% -33.87%
Bitcoin (IBIT) -4.87% -27.91% -23.81% -26.38% -32.21%
XRP (XRP) -4.35% -29.85% -30.27% -26.02%

What to Watch Today

The week’s risk narrative will likely be dominated by the fallout from the U.S. Supreme Court’s trade ruling and the potential for the White House to introduce new executive-level global tariffs using Section 122 or 301 authorities. Economic data remains a secondary focus as the market awaits the conclusion of the Q4 earnings season, headlined by Nvidia’s critical report later this week. Investors should also monitor Federal Reserve officials for signals on whether the recent deceleration in GDP to 1.4% will shift the central bank’s stance toward a more aggressive neutral rate pivot amid sticky inflation prints.

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.