The broad-market exchange-traded funds IWM and IVV experienced a downturn following midday trading on Monday, while the Invesco QQQ Trust (QQQ) saw a slight decline of 0.8%. The US equity indexes faced downward pressure, particularly from the communication services sector, as investors took a step back to reassess their positions ahead of this week's inflation reports.
In the energy sector, the iShares US Energy ETF (IYE) and the Energy Select Sector SPDR (XLE) both bounced back with a rise of 0.8%. Meanwhile, performance in technology was mixed; the Technology Select Sector SPDR ETF (XLK) lost 0.6%, while the iShares US Technology ETF (IYW) and the iShares Expanded Tech Sector ETF (IGM) fell as well.
Conversely, the SPDR S&P Semiconductor ETF (XSD) increased by 0.9%, although the iShares Semiconductor ETF (SOXX) recorded a minor decline of 0.1%. In the financial sector, the Financial Select Sector SPDR (XLF) dropped by 0.9%. The Direxion Daily Financial Bull 3X Shares (FAS) saw a more significant decline of 3%, compared to its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), which rose by 2.8%.
Turning to commodities, crude oil prices climbed by 2%, accompanying an increase in the United States Oil Fund (USO) of 2%. Natural gas registered a notable rise of 4.4%, with the United States Natural Gas Fund (UNG) not far behind at an increase of 3.5%. On the precious metals front, gold prices were up by 1% on the Comex, with SPDR Gold Shares (GLD) edging up 1.2%.
Silver prices saw a substantial increase of 3.4%, while the iShares Silver Trust (SLV) rose by 3.1%. In consumer sectors, the Consumer Staples Select Sector SPDR (XLP) gained 0.2% despite a dip in the Vanguard Consumer Staples ETF (VDC). The iShares Dow Jones US Consumer Goods (IYK) saw a fractional increase.
In contrast, the Consumer Discretionary Select Sector SPDR (XLY) dipped by 0.2%, although both the VanEck Vectors Retail ETF (RTH) and the SPDR S&P Retail ETF (XRT) showed advances. In health care, the Health Care Select Sector SPDR (XLV) experienced a minor decline, while the iShares US Healthcare (IYH) gained steadily and the Vanguard Health Care ETF (VHT) saw a fractional drop.
The iShares NASDAQ Biotechnology ETF (IBB) added a slight increase of 0.1%. On the industrial front, the Select Sector SPDR-Industrial (XLI) fell by 0.8%, reflecting a similar downtrend in the Vanguard Industrials (VIS) and iShares US Industrials (IYJ). Overall, the market showcases a complex interplay between rising sectors such as energy and commodities, and declining sectors like technology and financials, warranting careful consideration by investors navigating the current landscape..