Broad-market indicators showed a divergence in performance among major exchange-traded funds on Monday, with the iShares Russell 2000 ETF (IWM) experiencing a decline, while the iShares Core S&P 500 ETF (IVV) recorded an increase. The Invesco QQQ Trust (QQQ), which is actively traded, posted a gain of 0.7%.
As equity indexes navigated a mixed bag of performance, the market found itself entering a holiday-shortened week. In the energy sector, both the iShares US Energy ETF (IYE) and the Energy Select Sector SPDR Fund (XLE) saw modest gains of 0.1% each, indicating a slight recovery in energy stocks amidst fluctuating crude oil prices.
The technology sector displayed resilience, with the Technology Select Sector SPDR ETF (XLK) rising by 0.7%. Other technology-focused ETFs such as iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) also observed upward movements. In a more significant rally, the SPDR S&P Semiconductor ETF (XSD) surged by 1.8%, while the iShares Semiconductor ETF (SOXX) advanced by 2.7%, reflecting strong investor interest in semiconductor companies driven by the ongoing demand surge in technology. Conversely, the financial sector faced challenges, as evidenced by the Financial Select Sector SPDR Fund (XLF) dipping by 0.1%.
The Direxion Daily Financial Bull 3X Shares (FAS) fell by 0.4%, counterbalanced slightly by a 0.4% increase in its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ). Commodity markets displayed volatility, with crude oil prices decreasing by 0.8%. The United States Oil Fund (USO) mirrored this trend by falling 0.7%.
Natural gas prices experienced a steeper decline, with values dropping by 2.5%, while the United States Natural Gas Fund (UNG) recorded a 2.6% decrease. In terms of precious metals, gold saw a decline of 0.6% on the Comex, while the SPDR Gold Shares (GLD) decreased by 0.5%. On a more positive note, silver prices climbed by 1.1%, with the iShares Silver Trust (SLV) gaining 0.4%. Consumer sectors painted a mixed picture.
The Consumer Staples Select Sector SPDR Fund (XLP) experienced a drop of 1.1%, paralleling the Vanguard Consumer Staples ETF (VDC), which also dipped by 1.1%. In contrast, the iShares Dow Jones US Consumer Goods ETF (IYK) was down 1%. The Consumer Discretionary Select Sector SPDR Fund (XLY) managed a modest increase of 0.2%, while the retail-focused VanEck Vectors Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) remained in negative territory. The healthcare sector showed resilience with the Health Care Select Sector SPDR Fund (XLV) inching up by 0.4%.
Both the iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) saw similar positive trends, while the iShares Biotechnology ETF (IBB) added a modest 0.2%. In the industrial sector, the Select Sector SPDR-Industrial (XLI) slipped by 0.3%, reinforcing a slight downturn as Vanguard Industrials (VIS) and iShares US Industrials (IYJ) also faced modest losses.
As the week progresses, investors will be closely monitoring these sectors for signs of recovery or further declines, particularly in light of the approaching holiday season adjustments to trading patterns..