In the latest trading session, broad-market exchange-traded funds such as IWM and IVV experienced declines, signaling a cautious tone among investors. The actively traded Invesco QQQ Trust (QQQ) saw a notable drop of 1.1%. This downturn coincided with a disappointing consumer sentiment report which was revised lower, coupled with unexpected slowing in private sector output growth, creating an atmosphere of uncertainty in US equity indexes, which fell during midday trading on Friday. In the energy sector, the iShares US Energy ETF (IYE) reported a loss of 0.8%, while the Energy Select Sector SPDR (XLE) fell slightly by 0.7%.
The technology sector mirrored this trend, with the Technology Select Sector SPDR ETF (XLK) down 1.3%. Additionally, both the iShares US Technology ETF (IYW) and the iShares Expanded Tech Sector ETF (IGM) recorded declines. The semiconductor segment was not spared either; the SPDR S&P Semiconductor (XSD) lost 1.7%, and the iShares Semiconductor ETF (SOXX) fell even more sharply, down 2.2%.
In the financial sector, the Financial Select Sector SPDR (XLF) dipped 0.7%. The Direxion Daily Financial Bull 3X Shares (FAS) fell significantly by 2.1%, while its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), managed to rise by 2.4%, highlighting the mixed sentiment in financial markets. As for commodities, crude oil prices declined by 2.1%, reflected in the United States Oil Fund (USO), which also dipped 2.1%.
In contrast, natural gas prices showed resilience with a 4.4% increase, and the United States Natural Gas Fund (UNG) saw an uptick of 2.3%. Gold prices edged down by 0.1% on COMEX, although SPDR Gold Shares (GLD) managed a slight increase of 0.1%. Silver, meanwhile, decreased 1.3%, and iShares Silver Trust (SLV) fell by 0.6%. Consumer sectors displayed polarization; the Consumer Staples Select Sector SPDR (XLP) rose by 0.6%, with contributions from Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK).
However, the Consumer Discretionary Select Sector SPDR (XLY) suffered a setback, down 1.9%. The retail segment, including funds such as VanEck Vectors Retail ETF (RTH), fell by 1.2%, and the SPDR S&P Retail (XRT) saw a significant decline of 2.9%. In the health care domain, the Health Care Select Sector SPDR (XLV) eased by 0.4%, with iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) also showing downward trends.
The iShares Biotechnology ETF (IBB) slightly decreased by 0.1%. Finally, in industrials, the Select Sector SPDR-Industrial (XLI) was down by 1.6%, with Vanguard Industrials (VIS) and iShares US Industrials (IYJ) also reflecting red ink on the trading screen. The overall market trend indicates growing concern among investors as they digest these mixed signals, leaving the outlook cloudy at best..