Macro Overview
U.S. equity markets edged to new record highs on Thursday, demonstrating resilience as investors looked past the ongoing government shutdown. The S&P 500 (IVV) ticked up by 0.10%, with the Dow and Nasdaq also closing at all-time highs. The primary catalyst was continued strength in the technology sector, fueled by news of OpenAI partnerships that specifically boosted semiconductor-related companies. This AI-driven momentum was powerful enough to offset broader concerns about the shutdown’s potential economic impact and delays in key data releases.
U.S. Size & Style
Small-cap stocks showed notable strength, outpacing their larger counterparts. Small-Cap Growth (IJT) led the way with a 0.41% gain, followed closely by the broader Small-Cap index (IJR) at 0.30%. This risk-on sentiment was evident across the board, though Large-Cap Value (IVE) ended the day flat at 0.00%, indicating some rotation within the market.
| Ticker | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Value (IVE) | 0.00% | 0.76% | 2.58% | 5.26% | 9.81% | 7.35% |
| Large Cap (IVV) | +0.10% | 1.14% | 4.83% | 8.20% | 15.30% | 19.16% |
| Large Growth (IVW) | +0.14% | 1.38% | 6.74% | 10.73% | 19.98% | 28.96% |
| Mid Value (IJJ) | +0.14% | 0.51% | 0.96% | 2.82% | 5.71% | 8.45% |
| Mid Cap (IJH) | +0.12% | 0.35% | 1.34% | 3.73% | 6.20% | 7.38% |
| Mid Growth (IJK) | +0.18% | 0.26% | 1.65% | 4.42% | 6.36% | 6.10% |
| Small Value (IJS) | +0.22% | 1.22% | 3.15% | 8.46% | 4.07% | 7.74% |
| Small Cap (IJR) | +0.30% | 0.90% | 2.42% | 6.69% | 4.84% | 6.11% |
| Small Growth (IJT) | +0.41% | 0.68% | 1.73% | 5.19% | 5.65% | 4.26% |
U.S. Sectors & Industries
Sector performance was mixed, with Materials (XLB) leading all sectors with a strong 1.16% gain, followed by Technology (XLK) at 0.54%. The tech sector’s advance was powered by a surge in Semiconductor stocks, which jumped 2.84% on AI-related news. On the other end, the Energy (XLE) sector was the clear laggard, falling 1.01% as oil and gas exploration and production stocks saw significant declines.
| Sector | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Materials (XLB) | +1.16% | 0.98% | -1.59% | -1.42% | 8.17% | -4.47% |
| Technology (XLK) | +0.54% | 2.63% | 10.29% | 12.97% | 23.64% | 29.77% |
| Industrials (XLI) | +0.26% | 1.06% | 2.84% | 4.51% | 18.22% | 15.74% |
| Financial (XLF) | -0.07% | -0.95% | -0.12% | 1.72% | 11.52% | 19.94% |
| Utilities (XLU) | -0.18% | 1.24% | 5.28% | 8.92% | 18.53% | 11.03% |
| Health Care (XLV) | -0.20% | 5.68% | 4.57% | 6.27% | 5.46% | -4.69% |
| Communication Services (XLC) | -0.22% | -1.46% | 5.09% | 8.75% | 21.35% | 30.59% |
| Consumer Staples (XLP) | -0.40% | -0.03% | -2.69% | -4.55% | 1.04% | -2.42% |
| Real Estate (XLRE) | -0.52% | 0.07% | 1.54% | 1.07% | 5.42% | -2.05% |
| Consumer Discretionary (XLY) | -0.72% | -0.13% | 4.27% | 9.01% | 7.40% | 22.01% |
| Energy (XLE) | -1.01% | -3.86% | -1.46% | 2.61% | 5.81% | 0.74% |
Global Thematic
Thematic ETFs saw significant divergence. Crypto and Blockchain-related funds were the standout winners, with the Fidelity Crypto Industry and Digital Payments ETF (FDIG) soaring 5.04%. Uranium (URA) also had a strong showing, up 4.02%. In contrast, precious metals miners struggled, with the Sprott Silver Miners ETF (SLVR) falling 1.87%.
| Ticker | Name | 1-Day % Change |
|---|---|---|
| Top 5 Performers | ||
| FDIG | Fidelity Crypto Industry and Digital Payments ETF | +5.04% |
| IBLC | iShares Blockchain and Tech ETF | +4.97% |
| DAPP | VanEck Digital Transformation ETF | +4.88% |
| CRPT | First Trust SkyBridge Crypto Industry & Digital Economy… | +4.65% |
| STCE | Schwab Crypto Thematic ETF | +4.52% |
| Bottom 5 Performers | ||
| SLVR | Sprott Silver Miners & Physical Silver ETF | -1.87% |
| HYDR | Global X Hydrogen ETF | -1.31% |
| SILJ | Amplify Junior Silver Miners ETF | -1.29% |
| SLVP | iShares MSCI Global Silver Miners ETF | -1.27% |
| SIL | Global X Silver Miners ETF | -0.89% |
Developed Markets ex-U.S.
International developed markets posted solid gains, with the broad EFA index up 0.16%. South Korea (EWY) was the clear leader, rallying 2.00% on the back of the OpenAI news which directly benefited its large-cap tech constituents. European markets were also broadly positive, with the Netherlands (EWN) gaining 1.14%. The U.K. (EWU) was a notable laggard, declining by 0.56%.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Dev ex-U.S. (EFA) | +0.16% | 1.79% | 4.10% | 5.35% | 26.86% | 17.37% |
| Australia (EWA) | +0.11% | 1.91% | 1.53% | 2.41% | 15.65% | 4.30% |
| Canada (EWC) | +0.04% | 1.14% | 4.12% | 9.19% | 26.37% | 24.07% |
| France (EWQ) | +0.63% | 2.71% | 5.86% | 3.47% | 27.60% | 16.39% |
| Germany (EWG) | +0.81% | 3.08% | 3.48% | 0.71% | 35.67% | 30.00% |
| Hong Kong (EWH) | -0.32% | 2.32% | 1.46% | 7.41% | 32.42% | 12.41% |
| Japan (EWJ) | -0.07% | -0.36% | 2.56% | 7.64% | 20.41% | 15.21% |
| Netherlands (EWN) | +1.14% | 4.18% | 14.57% | 9.59% | 35.55% | 20.83% |
| South Korea (EWY) | +2.00% | 5.91% | 16.14% | 16.09% | 64.14% | 34.94% |
| Switzerland (EWL) | +0.55% | 3.67% | 2.89% | 1.77% | 24.72% | 11.06% |
| U.K. (EWU) | -0.56% | 1.64% | 3.33% | 6.69% | 27.21% | 18.23% |
Emerging Markets
Emerging markets also saw gains, with the EEM index rising 0.46%. Chinese equities (MCHI) performed well, adding 1.12%. However, performance was not uniform, as Latin American markets faced headwinds. Brazil (EWZ) was a notable underperformer, declining 1.11% on the day.
| Country | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Emerging (EEM) | +0.46% | 2.58% | 8.53% | 11.39% | 30.53% | 17.86% |
| Brazil (EWZ) | -1.11% | -1.59% | 4.28% | 4.60% | 36.79% | 8.13% |
| China (MCHI) | +1.12% | 4.15% | 8.68% | 21.80% | 44.35% | 22.02% |
| India (INDA) | -0.17% | 0.10% | -0.10% | -5.94% | -0.65% | -9.18% |
| Indonesia (EIDO) | -0.11% | -0.91% | -1.69% | -0.23% | -3.09% | -18.47% |
| Malaysia (EWM) | +0.23% | 2.10% | 6.23% | 7.62% | 9.37% | 3.02% |
| Mexico (EWW) | +0.18% | -0.36% | 6.34% | 8.62% | 45.48% | 29.17% |
| South Africa (EZA) | -0.83% | 1.44% | 12.16% | 18.23% | 55.02% | 35.81% |
| Taiwan (EWT) | -0.22% | 2.01% | 10.25% | 8.94% | 23.65% | 23.31% |
| Thailand (THD) | +0.51% | 0.05% | 2.69% | 15.05% | 0.80% | -9.52% |
Fixed Income
The fixed income market was relatively quiet, with easing Treasury yields providing a stable backdrop. Convertible bonds (CWB) were the clear outperformers, posting a strong 0.73% gain as equities rallied. Most other categories saw minimal changes, with core bonds (AGG) up a modest 0.11% and High Yield (HYG) slipping by 0.04%.
| Ticker | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.11% | 0.55% | 2.65% | 1.77% | 6.58% | 3.21% |
| Taxable Core Enhanced (IUSB) | +0.13% | 0.55% | 2.64% | 1.66% | 6.66% | 3.63% |
| Taxable Multisector (PYLD) | 0.00% | 0.41% | 1.39% | 2.86% | 7.84% | 7.15% |
| Taxable Ultrashort (BIL) | +0.01% | 0.04% | 0.34% | 1.07% | 3.17% | 4.35% |
| Taxable Short-Term (BSV) | +0.01% | 0.32% | 0.53% | 1.60% | 4.96% | 4.18% |
| Taxable Long Term (BLV) | +0.27% | 1.04% | 4.37% | 3.92% | 7.44% | -0.74% |
| Government Short (SPTS) | 0.00% | 0.22% | 1.35% | 0.46% | 3.96% | 4.01% |
| Government Intermediate (SPTI) | +0.07% | 0.55% | 2.08% | 0.83% | 6.70% | 3.56% |
| Government Long (SPTL) | +0.30% | 1.04% | 3.53% | 4.35% | 6.30% | -2.88% |
| Inflation Protected (TIP) | -0.04% | 0.23% | 0.74% | 2.29% | 7.00% | 3.49% |
| Corporate (SPIB) | +0.06% | 0.51% | 1.23% | 2.41% | 6.98% | 5.27% |
| Taxable High Yield (HYG) | -0.04% | 0.29% | 2.23% | 1.15% | 7.44% | 7.35% |
| Bank Loans (BKLN) | +0.05% | 0.10% | 0.60% | 1.62% | 4.74% | 7.23% |
| Preferred Stock (PFF) | -0.02% | 0.35% | 4.31% | 1.89% | 6.06% | 1.68% |
| Convertible (CWB) | +0.73% | 2.82% | 7.00% | 11.65% | 19.69% | 22.73% |
| Mortgage Backed (MBS) | +0.13% | 0.62% | 3.04% | 2.06% | 7.25% | 3.78% |
| International USD (BNDX) | +0.06% | 0.25% | 1.05% | 0.90% | 2.68% | 2.59% |
| International (IGOV) | -0.07% | 0.64% | 1.43% | -1.07% | 10.91% | 3.20% |
| Emerging USD (EMB) | +0.05% | 0.35% | 2.36% | 4.41% | 11.18% | 7.93% |
| Emerging (EMLC) | -0.12% | 0.18% | 1.93% | 1.57% | 15.08% | 7.55% |
| Municipal Short (SUB) | +0.03% | 0.10% | 0.04% | 1.01% | 2.93% | 2.75% |
| Municipal Intermediate (MUB) | -0.03% | 0.36% | 2.74% | 2.57% | 2.24% | 1.02% |
| Municipal Long (MLN) | -0.03% | 0.50% | 4.46% | 4.52% | 0.36% | -0.97% |
| Municipal High Yield (HYD) | -0.12% | 0.42% | 3.28% | 2.32% | 0.97% | -0.19% |
Commodities
Commodities were broadly lower, driven by a sharp drop in energy prices. WTI Crude Oil (USO) fell 2.19% amid profit-taking. In contrast, Industrial Metals (DBB) bucked the trend, rising 0.97%, with Copper (CPER) up 1.36%. Precious Metals (DBP) saw modest losses of 0.64%.
| Commodity | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | -0.45% | 0.20% | 1.69% | 2.43% | 10.47% | 7.82% |
| WTI Crude Oil (USO) | -2.19% | -7.12% | -6.80% | -5.36% | -5.31% | -1.68% |
| Gold (GLD) | -0.35% | 2.32% | 8.97% | 14.73% | 46.53% | 44.42% |
| Silver (SLV) | -0.89% | 1.60% | 14.48% | 27.95% | 61.53% | 46.66% |
| Copper (CPER) | +1.36% | 4.05% | 7.27% | -5.21% | 21.46% | 4.87% |
Cryptocurrency
The cryptocurrency market had a banner day, with broad-based gains across major assets. Solana (SOLZ) led the rally with an impressive 5.52% jump. Ethereum (ETHA) also showed significant strength, rising 3.81%, while Bitcoin (IBIT) posted a solid 3.04% gain as the asset class continues to attract investor interest.
| Asset | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Bitcoin (IBIT) | +3.04% | 11.03% | 9.21% | 10.17% | 29.63% | 100.85% |
| Multi-Coin (NCIQ) | +3.19% | 11.05% | 8.40% | 17.35% | — | — |
| Ethereum (ETHA) | +3.81% | 11.79% | 5.42% | 72.41% | 34.64% | 89.38% |
| Solana (SOLZ) | +5.52% | 15.44% | 11.69% | 45.51% | — | — |
What to Watch Today
The main event for investors today would normally be the monthly U.S. Employment Situation report. However, due to the federal government shutdown, the Bureau of Labor Statistics will not be releasing the jobs report as scheduled. This creates a significant data vacuum for the market and the Federal Reserve. Investors have been anticipating signs of a cooling labor market to support the case for potential interest rate cuts, but this delay introduces a new layer of uncertainty. Market participants will now have to rely on alternative data points and await a resolution to the shutdown to get a clear picture of the economy’s health.
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.
