The Defensive Shift: Energy & Gold Surge Amid Market Selloff

Share

Macro Overview

The broader market experienced a risk-off rotation as the U.S. Large Cap (IVV) declined 1.70%, driving its RSI down to an oversold level of 27.48. International developed equities navigated the headwinds slightly better, with the Developed ex-U.S. (EFA) shedding 0.91%. Emerging Markets (EEM) registered the strongest relative performance among global equity composites, slipping just 0.49%. Meanwhile, inflation narratives reignited as Broad Commodities (DJP) advanced 2.62%, pushing year-to-date returns to 26.91%.

U.S. Size & Style

Valuation concerns and rising commodity costs weighed heavily on domestic equities, with Large Growth (IVW) underperforming by posting a 2.08% loss. Value-oriented segments provided relative shelter across capitalization tiers, evidenced by Large Value (IVE) declining only 1.22%. Smaller capitalization stocks also faced downward pressure, as Small Growth (IJT) dropped 1.47% amid concerns over tightening credit conditions. This defensive positioning reflects a market shifting preference toward near-term cash flows over long-duration growth expectations.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Large Value (IVE) -1.22% -6.19% -2.73% -1.76% 10.15%
Large Cap (IVV) -1.70% -7.35% -7.87% -6.75% 13.21%
Large Growth (IVW) -2.08% -8.26% -12.25% -11.01% 16.01%
Mid Value (IJJ) -1.63% -7.26% -2.80% -1.22% 8.91%
Mid Cap (IJH) -1.64% -7.31% -1.58% 0.40% 13.05%
Mid Growth (IJK) -1.74% -7.49% -0.49% 1.81% 16.83%
Small Value (IJS) -1.65% -4.93% 0.88% 2.66% 18.95%
Small Cap (IJR) -1.55% -5.98% -0.97% 1.46% 16.09%
Small Growth (IJT) -1.47% -7.14% -2.79% 0.15% 13.08%

U.S. Sectors & Industries

The Energy (XLE) sector led the market with a 1.69% advance, pushing its 14-day RSI to an overbought reading of 82.99 as crude prices rallied. Defensive sectors also demonstrated relative strength, with Consumer Staples (XLP) and Utilities (XLU) gaining 0.79% and 0.57%, respectively. Conversely, higher interest rates disproportionately impacted cyclical and growth-sensitive areas, sending Consumer Discretionary (XLY) and Financials (XLF) down 2.89% and 2.53%. Technology (XLK) mirrored the broader growth selloff, retreating 1.95% on the day.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Energy (XLE) 1.69% 12.60% 42.45% 40.83% 39.06%
Consumer Staples (XLP) 0.79% -8.63% 5.12% 5.87% 4.00%
Utilities (XLU) 0.57% -3.82% 7.31% 7.53% 21.11%
Materials (XLB) -0.37% -8.02% 6.54% 8.32% 15.09%
Real Estate (XLRE) -0.69% -8.13% -0.60% -0.18% -0.10%
Industrials (XLI) -1.28% -9.88% 1.55% 2.92% 21.40%
Communication Services (XLC) -1.63% -9.04% -8.98% -8.78% 9.84%
Health Care (XLV) -1.70% -10.21% -7.82% -7.07% 0.58%
Technology (XLK) -1.95% -6.26% -11.23% -9.65% 23.54%
Financial (XLF) -2.53% -6.56% -13.60% -12.26% -3.26%
Consumer Discretionary (XLY) -2.89% -9.39% -13.24% -11.32% 4.75%

Global Thematic

Precious metal miners dominated the thematic leaderboard as investors sought traditional safe-haven assets amidst broader equity market volatility. The Sprott Silver Miners & Physical Silver (SLVR) surged 5.17%, followed closely by the Global X Gold Explorers (GOEX) at 5.04%. On the downside, speculative and growth-oriented themes faced severe capitulation, particularly in the cannabis sector. The Pure US Cannabis (MSOS) plummeted 8.12%, while digital asset infrastructure proxies like the Blockchain (BKCH) declined 5.77%.

Name (Ticker) 1-Day % Change
Leaders
Sprott Silver Miners & Physical Silver (SLVR) 5.17%
Global X Gold Explorers (GOEX) 5.04%
VanEck Junior Gold Miners (GDXJ) 4.40%
Amplify Junior Silver Miners (SILJ) 4.35%
VanEck Gold Miners (GDX) 4.13%
Laggards
AdvisorShares Pure US Cannabis (MSOS) -8.12%
REX Drone (DRNZ) -6.37%
Amplify Seymour Cannabis (CNBS) -6.23%
Global X Blockchain (BKCH) -5.77%
VanEck Digital Transformation (DAPP) -5.74%

Developed ex-U.S. & Emerging Markets

Global equity performance exhibited high dispersion, with commodity-exporting nations generally outpacing their manufacturing-heavy peers. South Korea (EWY) defied the regional downturn, posting a 0.83% gain supported by targeted fiscal stimulus narratives. European markets struggled against the backdrop of hawkish central bank rhetoric, leading to a 1.53% decline in Germany (EWG) and a 1.69% drop in the Netherlands (EWN). Among emerging economies, Malaysia (EWM) and South Africa (EZA) advanced 0.53% and 0.39%, respectively, benefiting from the rotation into resource-rich regions.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Developed Markets
Australia (EWA) 0.15% -9.57% 1.99% 3.89% 18.31%
Canada (EWC) -0.15% -7.50% -2.14% -0.56% 32.05%
U.K. (EWU) -0.23% -9.37% -0.27% 0.32% 21.87%
Switzerland (EWL) -0.56% -12.45% -5.88% -4.97% 10.41%
Hong Kong (EWH) -0.84% -7.56% 2.15% 5.32% 32.50%
France (EWQ) -0.90% -12.53% -7.33% -6.93% 6.13%
Germany (EWG) -1.53% -14.12% -10.72% -10.40% 2.98%
Japan (EWJ) -1.55% -11.84% 0.57% 0.85% 20.59%
Netherlands (EWN) -1.69% -11.00% -2.22% -2.00% 22.98%
Emerging Markets
South Korea (EWY) 0.83% -20.08% 26.23% 24.44% 119.04%
Thailand (THD) 0.79% -11.89% 8.68% 10.83% 28.70%
Malaysia (EWM) 0.53% -2.70% 2.86% 3.91% 25.24%
South Africa (EZA) 0.39% -21.29% -8.65% -6.64% 42.21%
China (MCHI) -0.40% -7.18% -10.53% -8.74% 0.40%
Brazil (EWZ) -0.46% -5.42% 15.83% 15.30% 46.74%
Taiwan (EWT) -0.87% -8.17% 10.27% 9.38% 47.75%
Indonesia (EIDO) -1.41% -13.64% -16.59% -17.70% -2.82%
Mexico (EWW) -1.61% -10.91% 1.35% 4.01% 43.51%
India (INDA) -1.69% -12.34% -14.90% -15.23% -11.53%

Fixed Income

Yield curve dynamics dictated fixed income returns as investors positioned for persistent inflation and higher terminal policy rates. Short-duration assets outperformed, with the Taxable Short-Term (BSV) gaining 0.17%, while the Taxable Long Term (BLV) declined 0.56% due to its heightened duration risk. Credit markets also exhibited weakness, as the Taxable High Yield (HYG) and Convertible (CWB) segments dropped 0.25% and 1.77%, respectively. International debt felt the pressure of a strong U.S. dollar, driving the Emerging USD (EMB) 0.55% lower.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Multisector
Taxable Short-Term (BSV) 0.17% -1.12% -0.18% -0.21% 4.09%
Taxable Core (AGG) -0.01% -2.52% -0.87% -0.71% 4.40%
Taxable Core Enhanced (IUSB) -0.04% -2.49% -0.95% -0.76% 4.60%
Taxable Long Term (BLV) -0.56% -4.91% -2.26% -1.76% 2.50%
Government
Government Short (SPTS) 0.14% -0.70% 0.12% 0.02% 3.79%
Government Intermediate (SPTI) 0.11% -2.28% -0.81% -0.67% 4.23%
Taxable Ultrashort (BIL) 0.03% 0.28% 0.86% 0.84% 4.01%
Inflation Protected (TIP) -0.08% -1.98% -0.35% -0.22% 3.11%
Government Long (SPTL) -0.42% -5.10% -1.65% -1.20% 1.37%
Specialty
Mortgage Backed (MBS) 0.09% -2.55% -0.62% -0.47% 5.57%
Corporate (SPIB) 0.00% -2.02% -0.94% -0.80% 5.15%
Taxable High Yield (HYG) -0.25% -2.00% -1.37% -1.41% 5.70%
Preferred Stock (PFF) -0.72% -3.88% -2.25% -1.94% 3.08%
Bank Loans (BKLN) -0.73% 1.16% -1.61% -1.66% 4.84%
Convertible (CWB) -1.77% -4.70% -0.43% 0.93% 17.46%
International & EM
International USD (BNDX) -0.17% -2.93% -1.14% -0.94% 2.33%
Emerging (EMLC) -0.28% -5.96% -2.83% -2.71% 10.93%
International (IGOV) -0.37% -5.70% -3.19% -2.69% 4.81%
Emerging USD (EMB) -0.55% -4.50% -2.90% -2.64% 8.33%
Municipals
Municipal Intermediate (MUB) 0.04% -2.75% -0.65% -0.85% 4.17%
Municipal Long (MLN) 0.03% -2.53% -0.94% -0.71% 4.37%
Municipal Short (SUB) 0.02% -0.73% 0.29% 0.16% 3.51%
Municipal High Yield (HYD) -0.22% -3.20% -1.84% -1.94% 2.34%

Commodities

Supply-side constraints and geopolitical tensions fueled a robust, broad-based rally across the commodities complex. The WTI Crude (USO) surged 5.92%, propelling its year-to-date return to 79.58% and elevating energy prices globally. Precious metals caught a strong bid on safe-haven demand, with Silver (SLV) advancing 4.39% and Gold (GLD) climbing 3.51%. Agricultural commodities were comparatively muted, though Wheat (WEAT) managed a slight 0.22% gain while Soybeans (SOYB) retreated 0.70%.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Broad Commodities (DJP) 2.62% 11.81% 22.83% 26.91% 36.59%
Agriculture
Wheat (WEAT) 0.22% 2.66% 13.36% 16.02% -0.77%
Agriculture (DBA) 0.22% 4.42% 5.88% 6.47% 6.49%
Sugar (CANE) -0.09% 14.32% 7.81% 8.87% -13.73%
Corn (CORN) -0.69% 3.86% 2.65% 4.79% 0.38%
Soybeans (SOYB) -0.70% 1.55% 8.28% 10.66% 13.14%
Energy
WTI Crude Oil (USO) 5.92% 51.56% 81.37% 79.58% 64.55%
Brent Crude Oil (BNO) 4.25% 51.39% 87.61% 86.09% 73.01%
Natural Gas (UNG) 3.72% 6.60% -4.14% 0.16% -39.83%
Energy (DBE) 3.23% 47.90% 74.23% 73.78% 64.31%
Industrial Metals
Industrial Metals (DBB) 0.39% -5.29% 0.13% -0.17% 20.81%
Copper (CPER) 0.36% -9.30% -6.59% -4.32% 4.66%
Precious Metals
Silver (SLV) 4.39% -25.36% -10.80% -1.52% 102.55%
Precious Metals (DBP) 3.70% -16.86% -4.50% 2.55% 52.96%
Gold (GLD) 3.51% -14.27% -0.49% 4.64% 47.07%
Palladium (PALL) 2.50% -22.75% -28.69% -13.72% 40.03%
Platinum (PPLT) 2.38% -21.11% -23.05% -9.13% 87.80%

Cryptocurrency

Digital assets endured another session of intense selling pressure as regulatory scrutiny and macro risk-off sentiment intersected. Bitcoin (IBIT) led the downturn with a 3.66% decline, deepening its year-to-date deficit to 24.67%. Broader token portfolios were similarly affected, with the Multi-Coin (NCIQ) shedding 3.46% and Solana (SOLZ) dropping 3.13%. Ethereum (ETHA) managed to contain its losses to 2.91%, though it remains down over 33% on the year.

Name (Ticker) 1-Day % Change 1 Month 3 Month YTD 1 Year
Bitcoin (IBIT) -3.66% 0.56% -24.61% -24.67% -24.35%
Multi-Coin (NCIQ) -3.46% 0.58% -26.28% -26.27% -24.21%
Solana (SOLZ) -3.13% 1.36% -32.96% -34.07% -46.61%
Ethereum (ETHA) -2.91% 3.37% -32.20% -33.08% -1.05%
XRP (XRP) -1.40% -2.44% -28.83% -27.92%

What to Watch Today

With Monday marking the penultimate trading session of the first quarter, institutional end-of-quarter portfolio rebalancing will serve as a primary broad market narrative. On the macroeconomic front, market participants will evaluate the Dallas Fed Manufacturing Index for real-time insights into regional industrial activity and cost pressures. Additionally, investors will monitor the Treasury yield curve’s reaction to recent commodity spikes, as inflation expectations could force adjustments to near-term monetary policy assumptions heading into Q2.

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.