Small Caps & Value Lead the Charge as Tech Takes a Breather

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Macro Overview

U.S. equity markets finished mixed on Thursday, with the Dow Jones Industrial Average and the S&P 500 (IVV) closing at record highs, gaining +0.24%. The session was defined by a rotation out of technology and into value and small-cap sectors, as disappointment over Oracle’s earnings weighed on the broader AI complex. Despite the tech weakness, investor sentiment remained resilient, buoyed by the Federal Reserve’s rate cut earlier in the week and benign economic data. The divergence was stark, with the Nasdaq slipping while small caps rallied significantly.

U.S. Size & Style

Small-cap stocks were the clear outperformers, with Small Growth (IJT) surging +1.20% and Small Cap (IJR) gaining +1.10%, as investors bet that lower rates would disproportionately benefit smaller firms. In contrast, Large Growth (IVW) was the only style box to finish in the red, dipping -0.08% under the pressure of falling tech giants.

Name (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Large Value (IVE) +0.60% +1.18% +1.54% +5.38% +13.76% +9.56%
Large Cap (IVV) +0.24% +0.51% +0.94% +5.10% +18.74% +14.89%
Large Growth (IVW) -0.08% -0.06% +0.41% +4.79% +22.97% +19.27%
Mid Value (IJJ) +0.92% +2.62% +5.17% +2.86% +10.00% +4.54%
Mid Cap (IJH) +0.95% +2.28% +4.18% +2.66% +10.23% +3.98%
Mid Growth (IJK) +0.96% +2.00% +3.34% +2.31% +10.14% +3.10%
Small Value (IJS) +0.98% +3.49% +5.21% +6.12% +10.24% +3.48%
Small Cap (IJR) +1.10% +3.15% +4.91% +4.86% +10.03% +2.65%
Small Growth (IJT) +1.20% +2.88% +4.74% +3.66% +9.75% +1.65%

U.S. Sectors & Industries

Sector performance highlighted the rotation into tangible assets, with Materials (XLB) jumping +1.99% to lead the GICS sectors, powered by a massive rally in the Metals & Mining (XME) industry which gained +4.72%. Financial (XLF) also had a strong showing, up +1.82%. Conversely, Technology (XLK) was the day’s laggard, dropping -0.51%, and Oil & Gas Expl. & Prod (XOP) suffered a steep decline of -1.63%.

Sector (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Materials (XLB) +1.99% +2.34% +3.10% -2.10% +8.81% +1.55%
Financial (XLF) +1.82% +2.22% +3.12% +1.89% +14.70% +11.79%
Industrials (XLI) +1.07% +2.04% +2.26% +3.65% +20.93% +15.47%
Health Care (XLV) +0.95% +0.21% +1.92% +10.42% +13.12% +9.97%
Consumer Staples (XLP) +0.74% +0.43% +1.77% -1.54% +2.16% -1.33%
Utilities (XLU) +0.73% -0.60% -4.05% +1.86% +16.09% +14.12%
Real Estate (XLRE) +0.54% -0.46% -2.16% -3.36% +2.63% -1.99%
Consumer Discretionary (XLY) +0.39% +0.38% +0.34% +1.43% +7.84% +2.48%
Communication Services (XLC) -0.22% -0.27% +2.29% +0.72% +21.73% +15.86%
Energy (XLE) -0.48% +0.09% +0.43% +4.01% +9.97% +5.07%
Technology (XLK) -0.51% +0.93% +1.00% +9.32% +27.86% +24.41%

Global Thematic

The thematic landscape was dominated by a powerful breakout in precious metals miners, fueled by a historic structural deficit in the silver market. Junior Silver Miners (SILJ) soared +5.79%, leading a cohort of related funds to the top of the leaderboard. On the other end of the spectrum, the “risk-on” trade in digital assets unwound sharply, with Crypto Industry (CRPT) plunging -3.15% as the market sold the news following the Fed’s decision.

Developed Markets ex-U.S.

International developed markets posted solid gains, with the broad Dev ex-U.S. (EFA) rising +0.59%. European indices were particularly strong; Netherlands (EWN) gained +1.19% and Germany (EWG) added +1.07%. However, South Korea (EWY) was a significant outlier, falling -1.85%.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Dev ex-U.S. (EFA) +0.59% +1.25% +1.06% +3.91% +30.52% +25.34%
Australia (EWA) -0.04% +1.14% +0.04% -2.81% +13.35% +7.30%
Canada (EWC) +0.67% +1.48% +5.96% +8.33% +35.09% +29.03%
France (EWQ) +0.94% +0.85% +0.65% +3.38% +28.25% +25.20%
Germany (EWG) +1.07% +2.37% +2.81% +2.42% +35.42% +29.87%
Hong Kong (EWH) +0.41% -0.63% -3.99% -0.59% +34.32% +29.84%
Japan (EWJ) +0.37% +0.62% +0.56% +3.57% +26.53% +21.33%
Netherlands (EWN) +1.19% +1.62% +1.31% +9.25% +35.52% +30.54%
South Korea (EWY) -1.85% +0.70% -0.35% +21.96% +86.60% +75.25%
Switzerland (EWL) +0.19% +0.79% +1.42% +4.22% +29.68% +25.03%
U.K. (EWU) +0.44% +0.99% +0.00% +3.46% +31.40% +26.43%

Emerging Markets

Emerging markets faced headwinds, with Emerging (EEM) slipping -0.47%. Performance was varied: Mexico (EWW) rallied +2.93%, continuing its strong YTD run, while Taiwan (EWT) fell -1.32%, likely impacted by the broader tech weakness.

Country (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Emerging (EEM) -0.47% +0.26% -1.24% +4.95% +32.48% +27.44%
Brazil (EWZ) +1.19% +1.94% -0.99% +10.35% +49.99% +33.16%
China (MCHI) -0.19% -1.55% -4.40% -3.92% +32.93% +29.95%
India (INDA) +0.39% -0.74% -2.14% +0.62% +1.77% -3.15%
Indonesia (EIDO) -0.95% -0.74% +1.25% +5.90% +3.80% -5.19%
Malaysia (EWM) +1.32% +0.86% +0.34% +6.08% +11.86% +12.54%
Mexico (EWW) +2.93% +3.47% +2.48% +8.14% +54.52% +43.45%
South Africa (EZA) +1.94% +2.39% +4.46% +14.76% +67.79% +49.46%
Taiwan (EWT) -1.32% +0.87% +0.81% +5.07% +27.36% +25.04%
Thailand (THD) -0.86% -0.35% -0.88% -1.99% +1.49% -3.89%

Fixed Income

Bond markets were largely muted, digesting the previous day’s data and Fed signaling. Convertible (CWB) bonds outperformed with a +0.43% gain, while longer-duration Treasuries saw slight pressure, with Government Long (SPTL) dipping -0.07%.

Category (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Taxable Core (AGG) +0.02% +0.09% -0.01% +0.47% +7.09% +5.49%
Taxable Core Enhanced (IUSB) -0.02% +0.04% -0.03% +0.55% +7.23% +5.74%
Taxable Multisector (PYLD) 0.00% +0.03% +0.36% +1.42% +9.04% +8.33%
Taxable Ultrashort (BIL) +0.01% +0.04% +0.33% +0.97% +3.94% +4.19%
Taxable Short-Term (BSV) +0.01% +0.08% +0.25% +0.80% +5.68% +5.53%
Taxable Long Term (BLV) -0.19% -0.04% -0.93% -0.86% +6.86% +2.47%
Government Short (SPTS) 0.00% +0.07% +0.31% +0.87% +4.70% +4.95%
Government Intermediate (SPTI) +0.03% 0.00% +0.07% +0.42% +7.26% +6.12%
Government Long (SPTL) -0.07% +0.04% -1.33% -0.96% +5.71% +1.24%
Inflation Protected (TIP) -0.05% -0.05% -0.58% -0.48% +6.91% +5.22%
Corporate (SPIB) -0.03% +0.06% +0.31% +0.75% +7.64% +6.63%
Taxable High Yield (HYG) -0.01% -0.04% +0.50% +1.05% +8.21% +7.12%
Bank Loans (BKLN) 0.00% +0.24% +0.77% +1.90% +6.40% +6.66%
Preferred Stock (PFF) +0.26% +0.91% +0.48% -1.18% +5.29% +2.52%
Convertible (CWB) +0.43% +0.84% -0.40% +3.80% +19.28% +14.78%
Mortgage Backed (MBS) +0.06% +0.16% -0.01% +0.90% +8.08% +6.45%
International USD (BNDX) -0.02% -0.20% -0.78% +0.05% +2.72% +1.71%
International (IGOV) +0.29% +0.43% -0.12% -1.42% +9.89% +6.57%
Emerging USD (EMB) +0.07% -0.02% +0.23% +2.07% +13.44% +10.58%
Emerging (EMLC) +0.35% +0.35% +1.01% +2.31% +17.66% +14.75%
Municipal Short (SUB) 0.00% +0.17% +0.27% +0.01% +3.35% +3.31%
Municipal Intermediate (MUB) 0.00% +0.06% -0.26% +1.26% +3.37% +2.34%
Municipal Long (MLN) -0.06% +0.06% -0.77% +1.56% +1.37% +0.45%
Municipal High Yield (HYD) +0.12% +0.27% +0.42% +1.50% +2.27% +1.58%

Commodities

Commodities diverged sharply. Silver (SLV) was the standout, rallying +2.76% as a structural deficit and strong industrial demand drove prices higher. WTI Crude Oil (USO) slumped -1.83%, weighing on the broader energy complex.

Commodity (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) +0.26% -1.53% +0.64% +9.17% +17.92% +17.08%
Energy (DBE) -1.80% -4.26% -5.97% -1.61% -0.14% +2.62%
WTI Crude Oil (USO) -1.83% -3.71% -4.77% -5.14% -8.34% -5.56%
Brent Crude Oil (BNO) -1.82% -3.50% -4.54% -4.73% -5.18% -3.73%
Natural Gas (UNG) -8.27% -20.10% -10.16% +5.31% -22.19% -10.16%
Gasoline (UGA) -1.30% -3.72% -8.43% -0.13% +1.16% +1.87%
Precious Metals (DBP) +1.52% +3.00% +6.90% +22.51% +67.76% +60.92%
Gold (GLD) +1.08% +1.76% +3.52% +17.47% +62.41% +56.69%
Silver (SLV) +2.76% +8.82% +24.05% +52.47% +118.84% +98.42%
Platinum (PPLT) +2.68% +3.31% +6.95% +22.46% +86.21% +80.01%
Palladium (PALL) +1.49% +2.61% +3.21% +25.54% +63.40% +52.41%
Industrial Metals (DBB) +1.17% +0.27% +3.45% +11.23% +19.31% +15.47%
Copper (CPER) +1.63% +0.78% +7.24% +16.70% +33.59% +26.40%
Agriculture (DBA) +0.57% +0.45% +0.38% -2.81% +0.19% +0.89%
Corn (CORN) +0.42% +0.28% -0.61% +1.70% -4.64% -3.14%
Soybeans (SOYB) +0.18% -0.91% -2.31% +3.21% +6.24% +7.16%
Wheat (WEAT) +0.78% -0.14% -3.64% -1.10% -14.23% -15.80%
Sugar (CANE) +0.16% +0.71% +4.57% -8.93% -15.66% -22.69%

Cryptocurrency

Digital assets saw a classic “sell the news” reaction following the Fed’s rate cut. Ethereum (ETHA) was hit hardest, falling -3.98%, while Bitcoin (IBIT) showed relative resilience but still declined -0.74%.

Asset (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Ethereum (ETHA) -3.98% +6.70% -6.19% -27.20% -3.60% -16.28%
Bitcoin (IBIT) -0.74% +2.78% -10.71% -19.88% -1.79% -9.74%
Multi-Coin (NCIQ) -1.31% +3.06% -10.64% -22.96%
Solana (SOLZ) -1.76% +2.42% -13.71% -42.20%
XRP -1.86% +0.04%

What to Watch Today

Investors will turn their attention to remarks from Chicago Fed President Austan Goolsbee later this morning (10:35 AM ET). Following this week’s rate cut and signs of a deepening split among Fed officials regarding the 2026 policy path, markets will scrutinize his comments for clues on future easing. Additionally, the Baker Hughes Rig Count at 1:00 PM ET will offer insight into activity levels in the energy sector following yesterday’s sharp pullback in oil and gas stocks.

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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.