In a challenging midday session, broad-market exchange-traded funds IWM and IVV experienced declines. Actively traded Invesco QQQ Trust (QQQ) saw a drop of 0.4% as investors reacted to rising government bond yields, which have continued to overshadow risk sentiment in the equity markets. In the energy sector, both iShares US Energy ETF (IYE) and Energy Select Sector SPDR (XLE) showed resilience, rising past the 0.6% mark.
This indicates a strong interest in energy assets amid fluctuating market conditions. On the technology front, however, the landscape appears more pessimistic. The Technology Select Sector SPDR ETF (XLK) fell by 0.5%, reflecting broader concerns within this high-growth area. Similarly, iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) also recorded drops of 0.5%.
The downturn was further exacerbated by SPDR S&P Semiconductor (XSD) which lost 1%, with iShares Semiconductor (SOXX) following closely behind with a decrease of 0.9%. In the financial sector, there was a slight downturn as the Financial Select Sector SPDR (XLF) dipped by 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) saw a reduction of 0.3%, whereas its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), managed to climb 0.5%, showcasing some investors’ preference for defensive strategies amid ongoing volatility. Turning to commodities, crude oil prices made a notable jump, rising by 2.7% as the United States Oil Fund (USO) nearly gained 3%.
Natural gas also enjoyed a modest increase of 0.8%, with the United States Natural Gas Fund (UNG) adding 2.3%. Precious metals had a positive session as well, with gold climbing 0.6% on Comex and SPDR Gold Shares (GLD) moving up by 0.9%. Notably, silver prices surged by 2.6%, while iShares Silver Trust (SLV) advanced even further with a 2.9% rise. In the consumer sector, Consumer Staples Select Sector SPDR (XLP) enjoyed a slight uplift of 0.3%.
Both Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) reported gains, reflecting a stable demand in essential goods. However, the Consumer Discretionary Select Sector SPDR (XLY) edged down by 0.5%. The retail-focused VanEck Vectors Retail ETF (RTH) also recorded a decrease of 0.5%, with SPDR S&P Retail (XRT) losing 1.3%, highlighting the pressure on discretionary spending. In Health Care, the Health Care Select Sector SPDR (XLV) dipped by 0.4%, with iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) also moving lower.
The iShares NASDAQ Biotechnology ETF (IBB) experienced a decline of 0.5%, showcasing caution in this vital sector. Industrial stocks were not spared from the declines either, with Select Sector SPDR-Industrial (XLI) dropping 1.1%. Vanguard Industrials (VIS) and iShares US Industrials (IYJ) both suffered losses, reflecting concerns about manufacturing and production amid changing market dynamics. Overall, market sentiment is strained as various sectors react to ongoing developments in the bond markets and economic indicators..