Broad-market exchange-traded funds such as IWM and IVV experienced gains, reflecting positive investor sentiment, while the actively traded Invesco QQQ Trust (QQQ) showed a notable increase of 2.3%. This upward momentum in US equity indexes was particularly pronounced after midday on Friday, driven by reduced fears of a government shutdown.
Senate Democratic Leader Chuck Schumer recently indicated his support for a Republican-crafted stopgap funding bill, alleviating some of the uncertainties that have been looming over the market. In the energy sector, the iShares US Energy ETF (IYE) added 2.7%, and the Energy Select Sector SPDR (XLE) rose by 2.8%, showcasing investor confidence in energy-related assets.
Technology stocks also surged, with the Technology Select Sector SPDR ETF (XLK) climbing by 2.8%. Other technology-focused funds such as iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) reflected similar positive trends. Additionally, the SPDR S&P Semiconductor ETF (XSD) saw an impressive increase of 4%, while iShares Semiconductor (SOXX) added 3.1% to its value, highlighting the strength of the semiconductor market. In the financial sector, the Financial Select Sector SPDR (XLF) recorded a 2.2% gain, while the Direxion Daily Financial Bull 3X Shares (FAS) surged by 6.4%.
Conversely, its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), saw a decline of 6.5%, indicating a prevailing bullish sentiment among investors. Turning to commodities, crude oil prices climbed by 1.1%, with the United States Oil Fund (USO) mirroring this gain. Natural gas showed a slight dip of 0.2%, though the United States Natural Gas Fund (UNG) managed to increase by 1%.
Gold prices showed a modest increase of 0.3% on Comex, with SPDR Gold Shares (GLD) adding 0.2%, while silver remained relatively flat with minor fluctuations. Consumption trends were also positive. The Consumer Staples Select Sector SPDR (XLP) posted a 0.3% increase, alongside similar gains from Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK).
On the other hand, the Consumer Discretionary Select Sector SPDR (XLY) rose by 2.1%, with the retail sector, represented by the VanEck Retail ETF (RTH), climbing 1.2% and SPDR S&P Retail (XRT) increasing by 1.4%, showcasing a resilient consumption appetite. In the health care sector, the Health Care Select Sector SPDR (XLV) increased by 0.7%.
Other health-related ETFs such as iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) also strengthened, while iShares Biotechnology ETF (IBB) added a modest 0.7% to its value. Lastly, in industrials, the Industrial Select Sector SPDR (XLI) was up 1.8%, with Vanguard Industrials (VIS) and iShares US Industrials (IYJ) reflecting similar growth trends, indicating robust activity within the sector. As investor confidence grows, the market remains attentive to future developments, particularly regarding government funding and its potential effects on financial markets..