In the latest trading session, broad-market exchange-traded funds such as IWM and IVV experienced a decline, with the actively traded Invesco QQQ Trust (QQQ) falling by 0.5%. This downturn in US equity indexes comes after Israel's airstrikes on Beirut, Lebanon, intensified geopolitical risks, even as the US services sector continues to show expansionary tendencies.
In the energy sector, the iShares US Energy ETF (IYE) and the Energy Select Sector SPDR (XLE) both marked an increase of 1.5%. However, the technology sector faced challenges with the Technology Select Sector SPDR ETF (XLK) shedding 0.2%. The iShares US Technology ETF (IYW) and the iShares Expanded Tech Sector ETF (IGM) also recorded losses.
Furthermore, the SPDR S&P Semiconductor ETF (XSD) showed a decline of 1.1%, while the iShares Semiconductor ETF (SOXX) fell by 0.4%. In terms of financials, the Financial Select Sector SPDR (XLF) decreased by 0.7%. In a noteworthy development, the Direxion Daily Financial Bull 3X Shares (FAS) eased by 2.1%, whereas its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), saw an increase of 2.2%.
Turning to commodities, crude oil prices surged by 4.9%, prompting the United States Oil Fund (USO) to rise by 3.8%. Natural gas also added 2.2%, with the United States Natural Gas Fund (UNG) edging up by 1.3%. On the precious metals front, gold saw a moderate increase of 0.3% on the Comex, while SPDR Gold Shares (GLD) rose fractionally.
Silver prices were reported to be 1.3% higher, with the iShares Silver Trust (SLV) contributing with a 1.1% increase. In the consumer sector, the Consumer Staples Select Sector SPDR (XLP) experienced a decline of 1.1%. The Vanguard Consumer Staples ETF (VDC) and the iShares Dow Jones US Consumer Goods (IYK) also fell.
The Consumer Discretionary Select Sector SPDR (XLY) dropped by 1.4%, reflecting the behavior of retail funds such as the VanEck Vectors Retail ETF (RTH) and the SPDR S&P Retail (XRT), which also posted lower figures. The health care segment exhibited a decline, with the Health Care Select Sector SPDR (XLV) dipping by 1%; similarly, the iShares US Healthcare (IYH) and the Vanguard Health Care ETF (VHT) were lower.
The iShares NASDAQ Biotechnology ETF (IBB) lost 1.4%, indicating a broader trend in this sector. Finally, in the industrial sector, the Select Sector SPDR-Industrial (XLI) faced a decrease of 0.8%, and both the Vanguard Industrials (VIS) and iShares US Industrials (IYJ) traded lower. As a summary, while some sectors such as energy and commodities displayed resilience, broader market influences and geopolitical tensions have led to recent downticks in US equity indices..