Broad-market exchange-traded funds IWM and IVV appreciated on Wednesday, reflecting positive sentiment in the equity markets. Actively traded Invesco QQQ Trust (QQQ) saw a notable increase of 2.3%. This surge followed the US equity indexes achieving fresh intraday record highs, supported by rising government bond yields and a strengthened dollar after Republican presidential nominee Donald Trump defeated Democratic counterpart Kamala Harris in the recent vote. In the energy sector, iShares US Energy ETF (IYE) increased by 3.3% while Energy Select Sector SPDR (XLE) recorded a gain of 3.7%.
Technology also showed robust performance, with Technology Select Sector SPDR ETF (XLK) rising by 2.4%. Additionally, iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) both climbed, indicating a strong demand for technology stocks. Notably, SPDR S&P Semiconductor (XSD) surged by 3.5%, and iShares Semiconductor (SOXX) saw a rise of 2.3%. In the financial sector, Financial Select Sector SPDR (XLF) enjoyed a significant gain of 5.8%.
Direxion Daily Financial Bull 3X Shares (FAS) soared 17.3%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), dropped by 17.4%, showcasing the volatility in this market. Looking at commodities, crude oil experienced a slight increase of 0.1%, although the United States Oil Fund (USO) edged down by 0.1%.
Natural gas recorded a commendable rise of 3.1%, and the United States Natural Gas Fund (UNG) climbed by 3.4%. On the other hand, gold prices fell by 2.7% on Comex, while SPDR Gold Shares (GLD) shed 2.8%. Silver faced a decline of 4.6%, and iShares Silver Trust (SLV) lost 4.5%. In consumer sectors, Consumer Staples Select Sector SPDR (XLP) declined by 1.8%, with Vanguard Consumer Staples ETF (VDC) and iShares Dow Jones US Consumer Goods (IYK) also facing losses.
In contrast, Consumer Discretionary Select Sector SPDR (XLY) edged up by 2.6%. The retail-centric VanEck Vectors Retail ETF (RTH) rose by 0.9%, and SPDR S&P Retail (XRT) gained 1.5%. Health Care Select Sector SPDR (XLV) moved fractionally higher, while iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) displayed mixed results, with the latter trending upwards.
iShares NASDAQ Biotechnology ETF (IBB) gained 0.9%, reflecting stability in the biotech sector. Industrial stocks also showed positive momentum, with Select Sector SPDR-Industrial (XLI) climbing by 3.7%, and both Vanguard Industrials (VIS) and iShares US Industrials (IYJ) moving higher. Overall, this rally across multiple sectors highlights a favorable reaction to the recent political developments and market optimism moving forward..