In a week marked by fluctuating market dynamics, broad-market exchange-traded funds such as IWM showed resilience with a rise, while IVV experienced a slight decline. The actively traded Invesco QQQ Trust (QQQ) saw a modest decrease, shedding 0.4%. US equity indexes were mixed during the choppy midday trading on Friday.
The mixed performance came in the wake of fresh inflation data indicating that price pressures are easing, which played a pivotal role in influencing investor sentiment. In the energy sector, the iShares US Energy ETF (IYE) posted a notable increase of 1.6%, reflecting ongoing investor interest in energy-related assets.
Similarly, the Energy Select Sector SPDR (XLE) also registered gains, climbing 1.4%. Technology shares faced volatility, with the Technology Select Sector SPDR ETF (XLK) falling by 0.8%. Additionally, iShares US Technology ETF (IYW) lost 0.7%, while the iShares Expanded Tech Sector ETF (IGM) experienced a decrease of 0.6%.
The SPDR S&P Semiconductor (XSD) index dipped 0.5%, and the iShares Semiconductor (SOXX) fell by 1.4%, hinting at cautious sentiment among tech investors. In the financial markets, the Financial Select Sector SPDR (XLF) managed to add 0.5%. Investors showed confidence in leveraged positions, as the Direxion Daily Financial Bull 3X Shares (FAS) rose by 1.4%.
However, its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), experienced a minor dip of 1.1%. Turning to commodities, crude oil prices saw a modest increase of 0.7%, with the United States Oil Fund (USO) rising by 1.3%. Natural gas outperformed with an impressive gain of 5.6%, alongside the United States Natural Gas Fund (UNG), which edged up 5.4%.
In the precious metals sector, gold experienced a decline of 0.7% on Comex, while SPDR Gold Shares (GLD) fell by 0.8%. Silver prices also moved downward, decreasing by 1.3%, with the iShares Silver Trust (SLV) declining by 1.7%. The consumer sector showed mixed results. The Consumer Staples Select Sector SPDR (XLP) saw a slight uptick of 0.1%.
The Vanguard Consumer Staples ETF (VDC) remained flat, while the iShares Dow Jones US Consumer Goods (IYK) presented a varied performance. The Consumer Discretionary Select Sector SPDR (XLY) also posted a modest increase of 0.1%, as the retail fund VanEck Vectors Retail ETF (RTH) and SPDR S&P Retail (XRT) experienced positive trading activity.
In health care, the Health Care Select Sector SPDR (XLV) rose by 0.2%. The iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) also traded higher, while the iShares NASDAQ Biotechnology ETF (IBB) contributed positively with an increase of 0.9%. Industrial stocks showed resilience with a gain of 0.4% in the Select Sector SPDR-Industrial (XLI).
The Vanguard Industrials (VIS) and the iShares US Industrials (IYJ) followed suit with upward movements. The developments in the broader market indicate a complex interplay between easing inflation pressures and sector-specific performances, painting a nuanced picture of investor sentiment as they navigate these shifts..