On a turbulent Tuesday, broad-market exchange-traded funds including the iShares Russell 2000 ETF (IWM) and the iShares S&P 500 ETF (IVV) experienced a decline, with actively traded Invesco QQQ Trust (QQQ) softening by 0.2%. The US equity indexes registered a decrease in the midst of fluctuating midday trading conditions, triggered by a notable drop in government bond yields coupled with a significant sell-off in crude oil.
In the energy sector, both the iShares US Energy ETF (IYE) and the Energy Select Sector SPDR (XLE) recorded losses of approximately 1.9%. Conversely, the technology sector saw mixed performance; the Technology Select Sector SPDR ETF (XLK) managed a modest gain of 0.2%, while the iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) edged higher.
However, the SPDR S&P Semiconductor ETF (XSD) fell by 1.5%, while the iShares Semiconductor ETF (SOXX) declined by 0.9%. In the financial sector, notable declines were observed with the Financial Select Sector SPDR (XLF) dropping by 2%. The Direxion Daily Financial Bull 3X Shares (FAS) plummeted 5.8%, while its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), rose by 5.8%.
Moving to commodities, crude oil prices fell by 4.6%, leading the United States Oil Fund (USO) to decline by 4.3%. In contrast, natural gas posted a 1.8% increase, with the United States Natural Gas Fund (UNG) adding 3%. Gold showed a slight uptick of 0.3% based on Comex futures, mirrored by a similar 0.3% increase in SPDR Gold Shares (GLD).
However, silver faced downward pressure, falling 0.3%, with the iShares Silver Trust (SLV) slightly lower at 0.2%. The consumer sector also saw declines; the Consumer Staples Select Sector SPDR (XLP) was down by 0.2%, alongside the Vanguard Consumer Staples ETF (VDC) and the iShares Dow Jones US Consumer Goods ETF (IYK).
On a brighter note, the Consumer Discretionary Select Sector SPDR (XLY) gained 0.1%, although retail-focused funds such as the VanEck Vectors Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) performed poorly. In the healthcare sector, the Health Care Select Sector SPDR (XLV) increased by 0.1%, but the iShares US Healthcare ETF (IYH) and the Vanguard Health Care ETF (VHT) saw losses, with the iShares NASDAQ Biotechnology ETF (IBB) trailing down 0.7%.
The industrial segment witnessed a minor drop, with the Select Sector SPDR-Industrial (XLI) decreasing by 0.5%, along with weaker performances from Vanguard Industrials (VIS) and iShares US Industrials (IYJ). Meanwhile, the $US30 and $US500 indexes also reflected the bearish sentiment in the market..