Daily Market Pulse: Defensive Rotation Takes Hold as Cannabis Stocks Surge

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Macro Overview

Markets closed a volatile week on a quiet note, with the S&P 500 (IVV) eking out a +0.12% gain on Friday. Beneath the calm surface, a distinct “risk-off” rotation took hold, as investors bid up defensive sectors while taking profits in high-flying technology names.

U.S. Size & Style

The rotation was evident across size and style boxes, with smaller companies and value stocks significantly outperforming. Mid Cap (IJH) led the pack, gaining +1.20%, followed closely by Small Value (IJS) at +1.14%. Conversely, Large Growth (IVW) was the lone decliner, slipping -0.19%.

Name (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Large Value (IVE) +0.44% -0.43% 0.00% 5.82% 10.28% 5.51%
Large Cap (IVV) +0.12% -1.59% 0.29% 6.44% 15.61% 14.12%
Large Growth (IVW) -0.19% -2.60% 0.46% 6.84% 20.12% 21.11%
Mid Value (IJJ) +1.18% 0.41% -1.10% 4.27% 3.99% -0.11%
Mid Cap (IJH) +1.20% 0.00% -0.34% 4.16% 5.16% 0.28%
Mid Growth (IJK) +1.16% -0.14% 0.43% 4.15% 6.05% 0.43%
Small Value (IJS) +1.14% 0.16% 0.13% 9.46% 2.92% -2.12%
Small Cap (IJR) +0.86% 0.13% -0.25% 7.06% 3.44% -2.60%
Small Growth (IJT) +0.68% 0.14% -0.60% 4.80% 3.97% -3.23%

U.S. Sectors & Industries

The flight to safety was most apparent in sector performance, with defensive areas seeing strong inflows. Consumer Staples (XLP) took the top spot, rising +1.47%, followed by Energy (XLE) at +1.44% and Utilities (XLU) at +1.39%. On the flip side, Technology (XLK) lagged significantly, dropping -0.35%.

Sector (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Consumer Staples (XLP) +1.47% 0.56% -1.88% -6.08% -0.55% -1.35%
Energy (XLE) +1.44% 1.60% 0.06% 7.01% 7.12% -0.65%
Utilities (XLU) +1.39% 0.66% -0.54% 4.32% 20.96% 18.82%
Real Estate (XLRE) +1.33% 0.90% -0.63% -0.02% 3.81% -1.16%
Materials (XLB) +1.20% 0.18% -4.03% -1.91% 3.48% -8.20%
Financial (XLF) +0.71% 0.78% -1.84% 3.08% 10.33% 9.85%
Industrials (XLI) +0.48% -1.12% -0.60% 2.16% 17.55% 10.73%
Consumer Discretionary (XLY) +0.16% -1.70% 0.07% 5.77% 5.82% 12.13%
Health Care (XLV) +0.14% 1.31% 1.32% 13.80% 7.64% -0.25%
Communication Services (XLC) -0.26% -2.35% -3.40% 4.88% 16.83% 17.32%
Technology (XLK) -0.35% -4.16% 0.87% 9.58% 24.50% 22.13%

Global Thematic

In thematics, cannabis stocks saw massive gains on Friday fueled by renewed regulatory optimism, with U.S. Cannabis (MSOS) surging +7.42%. Conversely, crypto-linked equities faced headwinds, with Bitcoin Miners (WGMI) falling -2.58%.

Developed Markets ex-U.S.

Developed international markets posted modest gains, with broad exposure via Developed Markets (EFA) rising +0.37%. Switzerland (EWL) was a standout performer, adding +0.94%.

Country (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Dev ex-U.S. (EFA) +0.37% -0.20% -0.18% 4.99% 26.87% 21.14%
Australia (EWA) -0.08% -1.23% -2.58% -0.60% 12.50% 3.11%
Canada (EWC) +0.70% -1.26% -1.65% 5.83% 25.15% 21.23%
France (EWQ) +0.83% -1.13% -0.02% 3.04% 24.78% 18.26%
Germany (EWG) +0.22% -0.61% -3.78% -4.37% 29.32% 25.95%
Hong Kong (EWH) +0.36% 3.44% 4.06% 5.79% 36.59% 25.94%
Japan (EWJ) +0.40% -0.19% 1.62% 8.71% 25.13% 21.86%
Netherlands (EWN) -0.38% -1.80% -1.40% 10.61% 31.51% 26.46%
South Korea (EWY) -1.83% -5.36% 10.14% 25.00% 80.39% 54.85%
Switzerland (EWL) +0.94% 0.69% -1.43% 3.84% 23.59% 14.96%
U.K. (EWU) +0.59% 0.47% 0.99% 5.88% 29.05% 24.28%

Emerging Markets

Emerging markets lagged their developed counterparts, with Emerging Markets (EEM) dipping -0.29%. Weakness in Asia, particularly China (MCHI) and Taiwan (EWT), offset strength in Latin America, where Mexico (EWW) rallied +1.27%.

Country (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Emerging (EEM) -0.29% -1.36% 0.91% 10.25% 31.69% 22.33%
Brazil (EWZ) +0.81% 3.63% 8.83% 15.15% 46.10% 21.71%
China (MCHI) -0.56% 0.06% -3.34% 9.30% 37.07% 25.06%
India (INDA) +0.24% -0.41% 1.65% 2.32% 2.11% -1.45%
Indonesia (EIDO) +0.49% 1.37% 6.31% 4.57% 2.97% -7.30%
Malaysia (EWM) +0.85% 1.47% 0.92% 7.59% 9.20% 8.42%
Mexico (EWW) +1.27% 1.94% 4.27% 10.01% 47.48% 32.68%
South Africa (EZA) +0.85% 0.74% -0.85% 13.38% 55.09% 35.39%
Taiwan (EWT) -0.51% -3.06% -0.31% 7.04% 24.83% 17.78%
Thailand (THD) -0.46% -0.71% 0.25% 3.26% 2.03% -5.45%

Fixed Income

Fixed income markets were relatively calm ahead of the Veterans Day holiday. Convertibles (CWB) posted the strongest gain at +0.34%, while longer-duration treasuries eased slightly, with Government Long (SPTL) down -0.26%.

Category (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Taxable Core (AGG) -0.04% -0.01% 0.40% 2.08% 6.83% 5.95%
Taxable Core Enhanced (IUSB) +0.09% 0.14% 0.55% 2.21% 7.08% 6.33%
Taxable Multisector (PYLD) -0.04% 0.04% 0.52% 2.54% 8.36% 8.86%
Taxable Ultrashort (BIL) +0.03% 0.08% 0.35% 1.05% 3.58% 4.29%
Taxable Short-Term (BSV) +0.03% 0.16% 0.36% 1.29% 5.32% 5.66%
Taxable Long Term (BLV) -0.25% -0.46% 0.27% 2.88% 7.29% 4.09%
Government Short (SPTS) +0.03% 0.16% 0.33% 1.24% 4.38% 5.09%
Government Intermediate (SPTI) +0.07% 0.22% 0.56% 1.66% 7.12% 6.68%
Government Long (SPTL) -0.26% -0.40% 0.72% 3.10% 6.66% 3.49%
Inflation Protected (TIP) +0.02% -0.11% 0.08% 1.32% 7.08% 5.73%
Corporate (SPIB) 0.00% 0.10% 0.22% 1.68% 7.06% 6.77%
Taxable High Yield (HYG) +0.09% -0.07% -0.04% 1.62% 7.18% 6.85%
Bank Loans (BKLN) 0.00% 0.14% 0.63% 1.63% 5.39% 6.36%
Preferred Stock (PFF) +0.16% -0.09% -1.79% 1.51% 4.22% 0.35%
Convertible (CWB) +0.34% -1.30% -0.01% 8.87% 19.64% 19.21%
Mortgage Backed (MBS) +0.09% 0.20% 0.68% 2.90% 7.81% 6.88%
International USD (BNDX) -0.04% -0.24% 0.79% 1.02% 3.34% 4.17%
International (IGOV) +0.07% -0.09% -0.17% -0.71% 9.66% 5.86%
Emerging USD (EMB) +0.05% -0.24% 1.46% 4.15% 12.66% 10.93%
Emerging (EMLC) +0.20% 0.43% 0.87% 2.76% 15.99% 11.62%
Municipal Short (SUB) +0.07% 0.09% -0.02% 0.25% 2.92% 3.56%
Municipal Intermediate (MUB) -0.01% 0.01% 0.90% 3.84% 3.33% 3.83%
Municipal Long (MLN) -0.17% -0.13% 1.13% 5.87% 1.70% 2.89%
Municipal High Yield (HYD) -0.08% -0.25% 0.56% 4.40% 1.52% 2.67%

Commodities

Commodities finished mostly higher, with Broad Commodities (DJP) adding +0.30%. Strength was driven by Precious Metals (DBP), which gained +0.60%, while Natural Gas (UNG) fell -1.55%.

Commodity (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) +0.30% 0.08% 1.41% 8.74% 13.99% 13.85%
Energy (DBE) -0.03% 0.47% 1.08% 2.79% 3.64% 4.96%
WTI Crude Oil (USO) +0.54% -1.79% -2.65% -2.94% -5.68% -4.55%
Brent Crude Oil (BNO) +0.34% -1.52% -2.61% -1.29% -2.77% -3.00%
Natural Gas (UNG) -1.55% 5.28% 1.23% 3.10% -17.01% 10.19%
Gasoline (UGA) -0.62% 2.83% 5.84% 9.42% 7.05% 6.54%
Precious Metals (DBP) +0.60% 0.04% 0.54% 18.01% 51.39% 46.40%
Gold (GLD) +0.61% 0.05% 0.56% 17.63% 52.11% 47.53%
Silver (SLV) +0.85% -0.20% 1.22% 26.35% 66.81% 50.88%
Industrial Metals (DBB) +0.42% -1.59% 2.22% 10.43% 14.59% 8.25%
Agriculture (DBA) +0.34% -0.64% -1.50% -0.19% -1.47% 6.09%

Cryptocurrency

Major cryptocurrencies enjoyed a strong session, with Solana (SOLZ) leading the way, rallying +5.59%. Bitcoin (IBIT) also posted solid gains, up +2.83%.

Asset (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Bitcoin (IBIT) +2.83% -5.49% -14.83% -11.90% 10.99% 35.05%
Multi-Coin (NCIQ) +3.69% -6.37% -16.65% -12.92%
Ethereum (ETHA) +4.76% -10.80% -22.74% -10.64% 3.56% 18.83%
Solana (SOLZ) +5.59% -13.40% -27.05% -9.14%

What to Watch Today

The economic calendar is relatively light for Monday, Nov. 10, as traders prepare for Veterans Day on Tuesday, when bond markets will be closed. Investors will likely focus on corporate earnings reports from companies such as Occidental Petroleum (OXY) and Live Nation (LYV) while positioning ahead of key inflation data, including the Consumer Price Index (CPI), due later in the week.

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.

For more context on the cannabis stock rally mentioned in the report, see this video: Cannabis stocks rally after Trump says he is weighing drug reclassification.