In the realm of broad-market exchange-traded funds, notable movements in IWM and IVV reflected a mixed performance, with the iShares Core S&P 500 ETF experiencing a slight decline. Meanwhile, the actively traded Invesco QQQ Trust (QQQ) experienced a minimal dip of less than 0.1%. This comes as US equity indexes showed a mixed bag mid-Tuesday, subsequently alongside gains in most government bond yields that were buoyed by an unexpected rise in retail sales ahead of a crucial Federal Reserve policy decision. Focusing on the energy sector, both the iShares US Energy ETF (IYE) and the Energy Select Sector SPDR (XLE) saw roughly a 1% increase, signaling a robust performance amid fluctuating market conditions. In technology, the Technology Select Sector SPDR ETF (XLK) faced a minor setback, falling by 0.4%.
Key players such as the iShares US Technology ETF (IYW) and the iShares Expanded Tech Sector ETF (IGM) also noted declines. Contrastingly, the SPDR S&P Semiconductor ETF (XSD) marked a notable uptick of nearly 1%, albeit the iShares Semiconductor ETF (SOXX) experienced a minor drop of 0.2%. Looking at financials, the Financial Select Sector SPDR (XLF) registered a modest gain of 0.2%.
The Direxion Daily Financial Bull 3X Shares (FAS) advanced by 0.5%, while its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), slipped down by 0.4%. In the commodities sector, crude oil prices surged by 2.6%, pushing the United States Oil Fund (USO) up by 1.7%. However, natural gas saw a decrease of 0.2%, with the United States Natural Gas Fund (UNG) falling by 0.4%.
On the precious metals front, gold prices edged down 0.6% on the Comex, impacting SPDR Gold Shares (GLD) which fell by 0.8%. Silver wasn’t much better off, decreasing by 0.3%, while the iShares Silver Trust (SLV) recorded a decline of 0.5%. Shifting gears to consumer goods, the Consumer Staples Select Sector SPDR (XLP) dipped by 1%.
Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) followed suit with declines. Conversely, the Consumer Discretionary Select Sector SPDR (XLY) saw a modest rise of 0.4%, with retail funds such as the VanEck Vectors Retail ETF (RTH) and SPDR S&P Retail (XRT) also experiencing positive traction. In the health care domain, the Health Care Select Sector SPDR (XLV) was down 1%.
The iShares US Healthcare ETF (IYH) along with Vanguard Health Care ETF (VHT) registered declines, while the iShares NASDAQ Biotechnology ETF (IBB) declined by 0.4%. Lastly, in the industrial sector, the Select Sector SPDR-Industrial (XLI) rose moderately by 0.2%, with increases noted in Vanguard Industrials (VIS) and iShares US Industrials (IYJ) as well. Overall, the market landscape appears dynamic and complex, with various sectors reacting divergently to economic indicators and broader market sentiment as retail sales demonstrated resilience against the backdrop of anticipated policy adjustments from the Federal Reserve..