Daily Action: Silver & Cannabis Rally While Tech Slides

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Macro Overview

U.S. equities drifted lower for a third consecutive session on Tuesday, as thin holiday trading volume and weakness in the technology sector weighed on the major indices. The S&P 500 (IVV) declined -0.14%, while the Nasdaq Composite and Dow Jones Industrial Average posted similar modest losses. While market breadth was mixed, the standout action occurred in commodities, where precious and industrial metals staged a sharp rebound after Monday’s sell-off. Investors also digested the release of the Federal Reserve’s meeting minutes, which revealed a divided committee debating the path of future rate cuts, though a majority remained supportive of the recent easing cycle.

U.S. Size & Style

Selling pressure was relatively broad-based across market capitalizations, though large-cap value stocks offered the most resilience. Large Value (IVE) was the top performer, slipping just -0.11%, outperforming Large Growth (IVW), which fell -0.17%. Small-caps underperformed their larger peers, with Small Cap (IJR) dropping -0.69% and Small Growth (IJT) lagging significantly at -0.91%.

Name (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Large Value (IVE) -0.11% -0.29% +1.01% +3.90% +13.81% +13.96%
Large Cap (IVV) -0.14% -0.48% +0.80% +3.45% +18.71% +18.24%
Large Growth (IVW) -0.17% -0.66% +0.55% +2.96% +22.84% +21.77%
Mid Value (IJJ) -0.26% -0.67% +1.27% +3.04% +8.29% +8.98%
Mid Cap (IJH) -0.34% -0.94% +1.04% +2.72% +8.56% +8.81%
Mid Growth (IJK) -0.45% -1.15% +0.83% +2.39% +8.49% +8.33%
Small Value (IJS) -0.44% -0.83% +1.72% +4.27% +7.52% +7.94%
Small Cap (IJR) -0.69% -1.17% +1.15% +2.89% +7.22% +7.46%
Small Growth (IJT) -0.91% -1.49% +0.43% +1.55% +6.84% +6.67%

U.S. Sectors & Industries

Sector performance was mixed, with Energy (XLE) leading the pack, gaining +0.76% thanks to strength in Oil & Gas Equipment & Services (XES), which jumped +1.45%. Defensive sectors also held up well, with Communication Services (XLC) rising +0.34% and Utilities (XLU) adding +0.23%. On the downside, Consumer Discretionary (XLY) was the worst performer, falling -0.41%, dragged down by weakness in retail. Technology (XLK) also struggled, losing -0.32% as software and semiconductor stocks faced pressure.

Sector (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Energy (XLE) +0.76% +1.72% +0.25% +1.50% +8.48% +9.91%
Communication Services (XLC) +0.34% +0.27% +2.84% +0.25% +23.66% +23.26%
Utilities (XLU) +0.23% +0.42% -4.49% -0.74% +16.74% +16.63%
Real Estate (XLRE) +0.22% +0.49% -1.22% -2.30% +3.54% +4.36%
Materials (XLB) -0.02% -0.82% +2.83% +2.57% +10.84% +11.29%
Health Care (XLV) -0.08% -0.24% -0.83% +12.34% +15.15% +15.42%
Consumer Staples (XLP) -0.17% -0.10% -0.74% +0.52% +2.13% +2.44%
Financial (XLF) -0.25% -0.79% +3.83% +2.79% +15.75% +15.87%
Industrials (XLI) -0.29% -0.50% +2.12% +1.76% +20.33% +20.18%
Technology (XLK) -0.32% -0.76% +1.76% +3.33% +25.84% +24.80%
Consumer Discretionary (XLY) -0.41% -1.38% +2.00% +0.65% +8.21% +7.40%

Global Thematic

Thematic performance showed wide divergence. Cannabis stocks surged, with Pure US Cannabis (MSOS) jumping +5.62%, and precious metals miners rallied alongside the commodity complex, lifting Junior Gold Miners (SGDJ) by +3.22%. Conversely, crypto-adjacent equities struggled, with Bitcoin Mining (WGMI) falling -2.79%, and uranium miners also faced steep losses.

Developed Markets ex-U.S.

Developed markets were generally resilient, with Dev ex-U.S. (EFA) gaining +0.17%. European markets led the way, as Germany (EWG) rose +0.56% and U.K. (EWU) added +0.45%. However, Switzerland (EWL) underperformed, falling -0.30%, and Australia (EWA) dropped -0.26%.

Country (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Dev ex-U.S. (EFA) +0.17% -0.13% +3.16% +5.17% +32.11% +32.11%
Australia (EWA) -0.26% -1.01% +3.92% -0.50% +14.30% +13.78%
Canada (EWC) -0.06% -0.91% +3.96% +8.38% +36.86% +37.57%
France (EWQ) +0.33% -0.09% +1.79% +3.28% +29.31% +29.56%
Germany (EWG) +0.56% +0.23% +4.47% +2.74% +36.57% +36.23%
Hong Kong (EWH) +0.33% -1.73% -0.05% +3.15% +36.27% +36.52%
Japan (EWJ) -0.14% +0.01% +1.25% +4.78% +26.27% +26.15%
Netherlands (EWN) +0.40% +0.12% +2.15% +2.43% +35.34% +35.37%
South Korea (EWY) -0.10% +2.90% +11.00% +25.92% +98.20% +97.04%
Switzerland (EWL) -0.30% -0.61% +4.06% +8.92% +33.41% +32.72%
U.K. (EWU) +0.45% -0.05% +4.47% +7.41% +35.70% +35.90%

Emerging Markets

Emerging markets outperformed the U.S., with Emerging (EEM) rising +0.40%. Brazil (EWZ) was the standout, rallying +2.15%, while Thailand (THD) also posted strong gains of +1.35%. In contrast, Mexico (EWW) came under pressure, declining -1.45%.

Country (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Emerging (EEM) +0.40% +0.15% +2.49% +4.25% +34.39% +33.94%
Brazil (EWZ) +2.15% +1.15% -1.40% +6.90% +49.90% +49.24%
China (MCHI) +0.35% -1.13% -1.41% -6.87% +32.14% +31.89%
India (INDA) +0.32% -0.37% -1.96% +3.03% +1.90% +1.88%
Indonesia (EIDO) +0.10% +1.19% +0.97% +7.41% +4.75% +4.47%
Malaysia (EWM) +0.15% -0.25% +5.97% +8.05% +16.60% +16.60%
Mexico (EWW) -1.45% -2.33% +3.54% +3.86% +54.04% +54.47%
South Africa (EZA) +1.17% -1.54% +9.43% +13.94% +76.32% +75.32%
Taiwan (EWT) +0.60% +1.09% +3.31% +4.76% +28.76% +28.24%
Thailand (THD) +1.35% -1.54% +2.85% +3.11% +2.80% +2.31%

Fixed Income

Treasury yields were mixed, and fixed income performance was muted. High yield and floating rate exposure saw small gains, with Taxable High Yield (HYG) and Bank Loans (BKLN) both up +0.10%. Emerging (EMLC) was the standout in the bond market, rising +0.31%, likely supported by the broader strength in emerging market currencies and commodities.

Category (Ticker) 1 Day WTD 1 Month 3 Month YTD 1 Year
Taxable Core (AGG) -0.04% +0.08% -0.04% +1.19% +7.45% +7.32%
Taxable Core Enhanced (IUSB) -0.06% +0.04% +0.03% +1.28% +7.64% +7.56%
Taxable Multisector (PYLD) 0.00% +0.11% +0.59% +2.02% +9.78% +9.73%
Taxable Ultrashort (BIL) +0.01% +0.01% +0.32% +0.97% +4.14% +4.16%
Taxable Short-Term (BSV) +0.01% +0.09% +0.30% +1.26% +6.06% +6.09%
Taxable Long Term (BLV) -0.17% +0.04% -1.27% +0.19% +7.02% +6.58%
Government Short (SPTS) +0.02% +0.10% +0.33% +1.16% +5.04% +5.23%
Government Intermediate (SPTI) -0.03% +0.03% -0.10% +1.23% +7.65% +7.53%
Government Long (SPTL) -0.15% +0.19% -1.46% +0.20% +5.96% +5.60%
Inflation Protected (TIP) -0.02% +0.07% -0.42% +0.12% +6.98% +6.85%
Corporate (SPIB) -0.03% 0.00% +0.26% +1.38% +8.07% +7.97%
Taxable High Yield (HYG) +0.10% +0.14% +0.59% +1.33% +8.70% +8.69%
Bank Loans (BKLN) +0.10% +0.05% +0.88% +1.99% +6.88% +7.08%
Preferred Stock (PFF) +0.19% 0.00% +1.14% +0.08% +5.21% +5.27%
Convertible (CWB) -0.38% -0.86% -0.69% -0.40% +17.18% +16.76%
Mortgage Backed (MBS) 0.00% +0.09% +0.38% +1.76% +8.64% +8.55%
International USD (BNDX) +0.02% -0.08% -0.40% +0.42% +2.99% +2.95%
International (IGOV) -0.29% -0.25% +0.62% -0.56% +10.26% +10.06%
Emerging USD (EMB) -0.12% -0.07% +0.52% +3.01% +14.08% +13.86%
Emerging (EMLC) +0.31% -0.12% +1.40% +3.30% +18.81% +18.45%
Municipal Short (SUB) +0.06% +0.12% +0.42% +0.77% +3.63% +3.61%
Municipal Intermediate (MUB) +0.06% +0.20% +0.23% +1.65% +3.77% +3.74%
Municipal Long (MLN) -0.28% -0.07% +0.33% +1.72% +1.99% +2.56%
Municipal High Yield (HYD) +0.02% +0.07% +0.36% +1.82% +2.80% +3.02%

Commodities

Commodities rebounded broadly, driven by strong gains in industrial and precious metals. Silver (SLV) surged +4.50%, and Copper (CPER) jumped +3.13%. WTI Crude Oil (USO) saw a modest gain of +0.19%. However, agricultural commodities lagged, with Sugar (CANE) dropping -1.71%.

Commodity (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) +0.92% -1.42% +1.30% +8.10% +19.38% +19.53%
Energy (DBE) +0.31% +1.58% -3.51% -3.39% -0.94% -0.35%
WTI Crude Oil (USO) +0.19% +1.84% -1.87% -5.44% -7.69% -6.79%
Brent Crude Oil (BNO) +0.18% +1.53% -2.23% -5.09% -4.77% -4.68%
Natural Gas (UNG) +0.54% +2.42% -10.93% +0.38% -21.95% -27.23%
Gasoline (UGA) +0.87% +1.51% -6.65% -3.10% -0.79% +0.02%
Precious Metals (DBP) +1.20% -4.70% +9.35% +21.13% +77.37% +78.63%
Gold (GLD) +0.07% -4.28% +2.84% +12.21% +64.74% +65.77%
Silver (SLV) +4.50% -3.01% +34.70% +62.80% +161.98% +160.99%
Platinum (PPLT) +3.02% -9.78% +30.16% +39.00% +139.15% +140.27%
Palladium (PALL) -2.65% -16.41% +11.04% +28.80% +76.07% +77.76%
Industrial Metals (DBB) +2.40% +0.66% +7.57% +15.11% +25.43% +24.71%
Copper (CPER) +3.13% -1.56% +9.20% +17.50% +40.10% +37.53%
Agriculture (DBA) -0.31% -0.35% +0.25% -1.02% -0.39% +0.83%
Corn (CORN) -0.51% -2.04% -1.35% +1.60% -5.54% -4.57%
Soybeans (SOYB) -0.32% -1.03% -6.31% +3.03% +2.93% +4.94%
Wheat (WEAT) -0.59% -1.76% -3.65% -2.29% -16.68% -16.51%
Sugar (CANE) -1.71% -1.32% -0.40% -8.30% -14.96% -14.55%

Cryptocurrency

Crypto assets were mostly positive, although performance varied significantly by asset. XRP led the gains, rising +1.11%, followed by Ethereum (ETHA) at +1.04% and Bitcoin (IBIT) at +0.91%.

Asset (Ticker) 1-Day % Change WTD 1 Month 3 Month YTD 1 Year
Solana (SOLZ) +0.80% +1.36% -9.75% -42.26%
Bitcoin (IBIT) +0.91% +0.44% -3.34% -23.34% -6.07% -6.95%
Multi-Coin (NCIQ) +0.93% +0.33% -5.31% -26.13%
Ethereum (ETHA) +1.04% +0.86% -2.70% -29.13% -11.70% -13.18%
XRP +1.11% +0.82% -14.28%

What to Watch Today

The main event on the economic calendar today was the release of weekly initial jobless claims at 8:30 AM ET. The number came in at 214,000, slightly below the expected 216,000 and last week’s reading. This data point reinforces the narrative that the labor market remains relatively resilient, even as other indicators have shown signs of cooling. For investors, this suggests that consumer spending could remain supportive of the economy heading into the new year, though it may also keep the Federal Reserve cautious about cutting rates too aggressively if wage pressures persist.

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.