On Tuesday, broad-market exchange-traded funds IWM and IVV experienced a decline, while the actively traded Invesco QQQ Trust (QQQ) fell by 0.3%. US equity indexes witnessed a drop following retail sales that grew more than anticipated and with the Federal Open Market Committee commencing its two-day policy meeting. In the energy sector, both iShares US Energy ETF (IYE) and Energy Select Sector SPDR (XLE) reported losses of approximately 1.4%.
Technology stocks faced setbacks as well, with the Technology Select Sector SPDR ETF (XLK) dipping by 0.4%. Additionally, iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) were lower. The SPDR S&P Semiconductor (XSD) lost 1.7%, and iShares Semiconductor (SOXX) fell by 1.1%. In the financial sector, the Financial Select Sector SPDR (XLF) decreased by 0.7%.
Direxion Daily Financial Bull 3X Shares (FAS) fell 2.2%, whereas its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), rose by 2.4%. Commodities took a hit as well, with crude oil prices falling by 1.3% and the United States Oil Fund (USO) dipping by 1.1%. Natural gas slipped 2.9%, while the United States Natural Gas Fund (UNG) lost 2.2%.
In precious metals, gold was down by 0.4% on Comex, with SPDR Gold Shares (GLD) following suit, falling by 0.3%. Silver also saw a decline of 0.5%, while iShares Silver Trust (SLV) dipped 0.1%. Consumer staples experienced a slight decrease, with Consumer Staples Select Sector SPDR (XLP) falling by 0.1%.
Vanguard Consumer Staples ETF (VDC) lost 0.3%, and iShares Dow Jones US Consumer Goods (IYK) was down 0.2%. Conversely, Consumer Discretionary Select Sector SPDR (XLY) rose by 0.2%, although retail funds like VanEck Vectors Retail ETF (RTH) and SPDR S&P Retail (XRT) were in the negative. In the health care sector, Health Care Select Sector SPDR (XLV) fell less than 0.1%, while both iShares US Healthcare (IYH) and Vanguard Health Care ETF (VHT) also reflected lower values.
However, iShares NASDAQ Biotechnology ETF (IBB) managed to gain 0.5%. Industrial stocks also faced challenges, with Select Sector SPDR-Industrial (XLI) losing 0.7%, and both Vanguard Industrials (VIS) and iShares US Industrials (IYJ) trending lower. In summary, the overall market sentiment was impacted by mixed retail sales data and the ongoing Federal Reserve meeting..