Macro Overview
U.S. equities took a breather on Wednesday, pausing the strong rally that kicked off 2026. The S&P 500 (IVV) slipped -0.33%, ending a modest winning streak as investors digested mixed economic signals and new political headlines. While the broader market retreated, a distinct rotation occurred beneath the surface: defensive growth sectors found support, while cyclical value areas like Financials and Industrials came under pressure. Specifically, headlines regarding potential restrictions on institutional home buying weighed on housing-related stocks, while comments on Venezuelan oil supply pressured energy prices. Despite the pause, the undertone remained cautiously optimistic, with the Nasdaq managing a slight gain driven by resilience in tech and a breakout in biotechnology.
U.S. Size & Style
Growth continued to outperform Value across the market capitalization spectrum, a reversal of the “everything rally” seen earlier in the week. Large Growth (IVW) was the only style box to finish in positive territory, gaining +0.24%. In contrast, value strategies struggled significantly, with Mid Value (IJJ) dropping -1.03% and Large Value (IVE) falling -0.98%. Small caps also faced headwinds, as Small Cap (IJR) declined -0.80%, lagging its large-cap peers.
| Name (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Large Growth (IVW) | +0.24% | 1.15% | 0.32% | 3.23% | 1.22% | 22.37% |
| Large Cap (IVV) | -0.33% | 0.94% | 0.87% | 3.37% | 1.12% | 18.59% |
| Mid Growth (IJK) | -0.49% | 2.57% | 3.50% | 5.84% | 4.17% | 10.98% |
| Small Growth (IJT) | -0.64% | 1.84% | 1.56% | 3.58% | 2.92% | 7.64% |
| Mid Cap (IJH) | -0.73% | 2.02% | 3.10% | 5.30% | 3.42% | 10.57% |
| Small Cap (IJR) | -0.80% | 1.94% | 2.19% | 5.12% | 2.95% | 8.88% |
| Small Value (IJS) | -0.95% | 2.10% | 2.98% | 6.72% | 2.96% | 10.06% |
| Large Value (IVE) | -0.98% | 0.66% | 1.52% | 3.51% | 0.99% | 14.06% |
| Mid Value (IJJ) | -1.03% | 1.47% | 2.69% | 4.69% | 2.61% | 9.83% |
U.S. Sectors & Industries
Health Care (XLV) was the clear standout, rising +0.99% as the only sector to close in the green. This strength was fueled by a massive rally in biotechnology, with the Biotech (XBI) industry fund surging +3.55% amid a thawing fundraising environment and renewed M&A optimism. On the flip side, interest-rate-sensitive and cyclical sectors took a hit. Utilities (XLU) plunged -2.42%, and Industrials (XLI) dropped -1.88%. Homebuilders (XHB) were also notably weak (-1.99%) following political commentary impacting the housing market.
| Sector (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Health Care (XLV) | +0.99% | 2.67% | 4.62% | 11.17% | 3.14% | 16.28% |
| Technology (XLK) | -0.08% | 1.55% | 0.10% | 2.74% | 1.78% | 26.03% |
| Consumer Discretionary (XLY) | -0.14% | 2.15% | 1.18% | 2.79% | 1.25% | 9.66% |
| Communication Services (XLC) | -0.20% | 0.16% | 0.29% | 1.21% | -0.54% | 21.12% |
| Consumer Staples (XLP) | -1.10% | -1.38% | -1.56% | -1.21% | -1.36% | 1.91% |
| Energy (XLE) | -1.12% | -1.14% | -0.89% | 1.71% | 0.94% | 6.07% |
| Real Estate (XLRE) | -1.38% | -0.59% | -1.01% | -2.30% | -0.52% | 3.82% |
| Financial (XLF) | -1.40% | 1.24% | 3.95% | 3.78% | 1.53% | 16.65% |
| Materials (XLB) | -1.73% | 1.21% | 6.41% | 4.94% | 2.93% | 13.74% |
| Industrials (XLI) | -1.88% | 0.63% | 3.19% | 3.41% | 2.48% | 21.79% |
| Utilities (XLU) | -2.42% | -3.03% | -2.58% | -6.45% | -1.92% | 13.27% |
Global Thematic
Thematic performance diverged sharply, heavily influenced by the biotech breakout and weakness in crypto and clean energy. Clinical-Stage Biotech (SBIO) soared +4.62%, followed by gains in Genomics & Immunology (ARKG). Conversely, digital asset proxies struggled, with Crypto Miners (WGMI) tumbling -3.72%.
| Name (Ticker) | 1-Day % Change |
|---|---|
| Clinical-Stage Biotech (SBIO) | +4.62% |
| Genomics & Immunology (ARKG) | +1.87% |
| Cannabis & Vice (CNBS) | +1.52% |
| Cybersecurity (HACK) | +1.22% |
| Uranium & Nuclear Energy (URA) | +0.93% |
| Solar (TAN) | -2.02% |
| Silver Miners (SIL) | -2.00% |
| Blockchain (BLOK) | -1.91% |
| Future Tech & Robotics (SNSR) | -1.66% |
| Crypto Miners (WGMI) | -3.72% |
Developed Markets ex-U.S.
International markets generally drifted lower, with Developed ex-U.S. (EFA) slipping -0.38%. A notable exception was Germany (EWG), which bucked the trend to post a +0.30% gain. The United Kingdom and Canada were among the weakest performers, with U.K. (EWU) falling -1.24% and Canada (EWC) down -1.17%.
| Country (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Germany (EWG) | +0.30% | 1.64% | 4.47% | 2.83% | 1.79% | 35.64% |
| Japan (EWJ) | -0.18% | 1.96% | 2.82% | 5.00% | 2.70% | 28.97% |
| ex-U.S. (EFA) | -0.38% | 0.92% | 4.07% | 5.55% | 1.98% | 32.87% |
| Switzerland (EWL) | -0.40% | -0.05% | 3.93% | 6.65% | 0.58% | 31.12% |
| France (EWQ) | -0.44% | 0.20% | 2.26% | 4.20% | 0.91% | 28.37% |
| South Korea (EWY) | -0.54% | 4.71% | 16.08% | 31.33% | 10.09% | 103.77% |
| Hong Kong (EWH) | -0.81% | 0.87% | 3.29% | 6.38% | 3.81% | 42.88% |
| Australia (EWA) | -0.83% | -0.76% | 1.45% | -1.54% | 0.31% | 12.01% |
| Netherlands (EWN) | -1.06% | 1.98% | 6.05% | 6.03% | 4.86% | 38.10% |
| Canada (EWC) | -1.17% | -0.33% | 2.26% | 6.98% | 0.15% | 35.19% |
| U.K. (EWU) | -1.24% | 0.07% | 4.94% | 6.84% | 1.16% | 35.48% |
Emerging Markets
Emerging markets were broadly lower, with the aggregate Emerging (EEM) fund falling -0.75%. Weakness in China (MCHI), down -1.32%, and Brazil (EWZ), down -1.24%, weighed heavily on the complex. India (INDA) was a rare bright spot, posting a modest +0.22% gain.
| Country (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| India (INDA) | +0.22% | -0.66% | 0.43% | 2.50% | 0.28% | 3.38% |
| Thailand (THD) | +0.16% | 1.72% | 2.67% | 2.74% | 2.13% | 5.99% |
| Mexico (EWW) | -0.17% | 0.37% | 3.78% | 9.59% | 0.85% | 49.44% |
| Indonesia (EIDO) | -0.26% | 1.17% | 2.10% | 10.24% | 1.76% | 7.35% |
| Taiwan (EWT) | -0.36% | 1.27% | 4.99% | 5.87% | 3.24% | 29.24% |
| Malaysia (EWM) | -0.72% | 0.04% | 4.60% | 7.22% | 0.26% | 17.25% |
| Emerging (EEM) | -0.75% | 1.08% | 5.35% | 6.68% | 3.91% | 38.62% |
| Brazil (EWZ) | -1.24% | 1.55% | 4.13% | 14.13% | 2.93% | 48.80% |
| China (MCHI) | -1.32% | -0.58% | -0.03% | -4.81% | 3.01% | 39.81% |
| South Africa (EZA) | -1.77% | 2.95% | 11.05% | 16.34% | 3.85% | 81.72% |
Fixed Income
Treasuries caught a bid as investors sought safety amidst the equity volatility. Government Long (SPTL) led the way, rising +0.45%, while Municipal Long (MLN) also performed well, up +0.37%. Riskier credit segments were flatter, with Taxable High Yield (HYG) dipping slightly by -0.02%.
| Category (Ticker) | 1 Day | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Taxable Core (AGG) | +0.10% | 0.27% | 0.42% | 0.98% | 0.24% | 8.04% |
| Taxable Core Enhanced (IUSB) | +0.09% | 0.28% | 0.44% | 1.09% | 0.26% | 8.21% |
| Taxable Multisector (PYLD) | +0.04% | 0.26% | 0.89% | 2.03% | 0.37% | 10.11% |
| Taxable Ultrashort (BIL) | +0.02% | 0.03% | 0.32% | 0.98% | 0.08% | 4.16% |
| Taxable Short-Term (BSV) | 0.00% | 0.09% | 0.45% | 1.09% | 0.08% | 6.21% |
| Taxable Long Term (BLV) | +0.34% | 0.72% | 0.08% | 0.00% | 0.53% | 8.59% |
| Government Short (SPTS) | +0.03% | 0.07% | 0.43% | 1.01% | 0.03% | 5.23% |
| Government Intermediate (SPTI) | +0.10% | 0.28% | 0.39% | 1.09% | 0.21% | 7.99% |
| Government Long (SPTL) | +0.45% | 0.76% | 0.20% | -0.02% | 0.57% | 7.60% |
| Inflation Protected (TIP) | +0.15% | 0.35% | 0.13% | 0.10% | 0.31% | 7.33% |
| Corporate (SPIB) | -0.03% | 0.12% | 0.46% | 1.16% | 0.15% | 8.40% |
| Taxable High Yield (HYG) | -0.02% | 0.26% | 0.64% | 1.60% | 0.31% | 8.67% |
| Bank Loans (BKLN) | 0.00% | 0.14% | 0.87% | 2.23% | 0.19% | 6.77% |
| Preferred Stock (PFF) | -0.13% | 0.45% | 1.96% | 0.25% | 1.45% | 5.85% |
| Convertible (CWB) | -0.64% | 1.71% | 1.79% | 0.62% | 3.25% | 19.05% |
| Mortgage Backed (MBS) | +0.03% | 0.20% | 0.55% | 1.32% | 0.12% | 9.17% |
| International USD (BNDX) | +0.19% | 0.46% | 0.37% | 0.76% | 0.43% | 3.78% |
| International (IGOV) | +0.02% | 0.24% | 0.60% | 0.22% | 0.10% | 11.15% |
| Emerging USD (EMB) | -0.20% | -0.15% | 0.22% | 2.41% | -0.12% | 13.53% |
| Emerging (EMLC) | -0.19% | 0.19% | 1.76% | 3.76% | 0.43% | 18.59% |
| Municipal Short (SUB) | 0.00% | 0.15% | 0.63% | 0.85% | 0.18% | 3.69% |
| Municipal Intermediate (MUB) | +0.21% | 0.38% | 0.96% | 1.85% | 0.50% | 4.42% |
| Municipal Long (MLN) | +0.37% | 0.28% | 1.13% | 1.88% | 0.62% | 3.03% |
| Municipal High Yield (HYD) | +0.27% | 0.20% | 1.09% | 2.13% | 0.27% | 3.25% |
Commodities
Commodities were mixed, with energy decoupling from metals. Natural Gas (UNG) spiked +4.43%, likely driven by short-term weather expectations, while crude oil remained soft after headlines regarding Venezuelan supply. Precious and industrial metals faced significant selling pressure; Precious Metals (DBP) fell -1.92%, and Industrial Metals (DBB) dropped -2.96%.
| Commodity (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Broad Commodities (DJP) | -0.82% | 2.28% | 0.27% | 6.82% | 2.45% | 19.18% |
| Energy (DBE) | -0.29% | -1.41% | -7.96% | -6.37% | -1.80% | -6.17% |
| WTI Crude Oil (USO) | -1.05% | -1.70% | -5.74% | -7.39% | -1.98% | -13.28% |
| Brent Crude Oil (BNO) | -0.36% | -0.78% | -4.76% | -6.25% | -1.02% | -10.02% |
| Natural Gas (UNG) | +4.43% | -2.32% | -28.04% | -14.51% | -3.92% | -26.33% |
| Gasoline (UGA) | +0.44% | 0.16% | -7.28% | -3.69% | -0.60% | -3.54% |
| Precious Metals (DBP) | -1.92% | 4.02% | 11.83% | 20.95% | 5.09% | 79.88% |
| Gold (GLD) | -0.96% | 2.75% | 5.90% | 11.73% | 3.26% | 67.33% |
| Silver (SLV) | -3.73% | 7.92% | 34.01% | 63.54% | 10.15% | 159.64% |
| Platinum (PPLT) | -4.99% | 7.69% | 39.92% | 41.72% | 12.35% | 140.33% |
| Palladium (PALL) | -3.08% | 7.58% | 20.50% | 30.34% | 10.24% | 88.33% |
| Industrial Metals (DBB) | -2.96% | 2.65% | 8.16% | 14.81% | 2.96% | 30.01% |
| Copper (CPER) | -3.65% | 2.66% | 7.68% | 14.73% | 2.72% | 37.01% |
| Agriculture (DBA) | +0.27% | 1.37% | 1.20% | 0.90% | 1.53% | 1.28% |
| Corn (CORN) | +0.56% | 1.59% | 0.34% | 2.29% | 1.02% | -4.63% |
| Soybeans (SOYB) | +0.73% | 1.65% | -3.69% | 1.56% | 1.46% | 4.62% |
| Wheat (WEAT) | +1.35% | 1.55% | -1.88% | -0.93% | 1.70% | -15.20% |
| Sugar (CANE) | +1.10% | 1.25% | 1.34% | -8.58% | -0.56% | -16.24% |
Cryptocurrency
The crypto complex cooled off, with major assets retreating alongside riskier pockets of the equity market. Bitcoin (IBIT) fell -1.73%, while Ethereum (ETHA) saw sharper declines, dropping -3.35%.
| Asset (Ticker) | 1-Day % Change | WTD | 1 Month | 3 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Bitcoin (IBIT) | -1.73% | 1.18% | 1.68% | -25.44% | 3.81% | -5.93% |
| Multi-Coin (NCIQ) | -2.04% | 2.00% | 2.31% | -26.82% | 5.45% | — |
| Solana (SOLZ) | -2.39% | 3.42% | 1.95% | -40.11% | 9.11% | — |
| Ethereum (ETHA) | -3.35% | 0.42% | 3.63% | -30.15% | 5.57% | -7.68% |
| XRP | -3.64% | 9.77% | 7.40% | — | 18.76% | — |
What to Watch Today
Investors will turn their attention to the 8:30 AM ET release of the Initial Jobless Claims and the International Trade in Goods and Services report. Jobless claims are a critical real-time gauge of the labor market’s health; a lower-than-expected number could reinforce the “soft landing” narrative but might also temper expectations for aggressive Fed rate cuts. Conversely, a spike in claims could reignite recession fears. The trade balance data will also be scrutinized for insights into global demand dynamics, especially given the recent weakness in manufacturing and international equity markets.
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.
