Weekly Market Review: Technology Leads Stocks Higher as Bonds and Commodities Retreat

What Moved Markets This Week

According to a retail sales report referenced during the week, U.S. retail and food services sales increased 1.2% in August after declining 0.5% in July, pointing to resilient consumer spending. Data of this kind is often watched by market participants for signals about the pace of economic activity.

Much of the week's equity strength was tied to large-cap technology. As widely reported, Meta Platforms rose sharply on enthusiasm around early results from an artificial intelligence product, and Advanced Micro Devices reached a $1 trillion market value for the first time on September 21. These moves coincided with gains in the Technology ETF (XLK), up 3.62%, and the Communication Services ETF (XLC), up 2.25%. These items are noted only as factual context for the sector moves and not as commentary on any individual company.

Equities, Sectors, and Country Markets

Sector performance underscored the technology-led theme. The Technology ETF (XLK) was the strongest sector in the data at 3.62%, followed by Communication Services (XLC) at 2.25% and Healthcare (XLV) at 1.77%. On the other side, defensive and rate-sensitive sectors lagged: the Utilities ETF (XLU) fell 3.14%, the Energy ETF (XLE) declined 2.91%, the Financials ETF (XLF) dropped 1.51%, and the Real Estate ETF (XLRE) slipped 1.49%.

Country markets showed a similar split. The South Korea ETF (EWY) rose 3.18% and the Taiwan ETF (EWT) added 2.82%, both markets with heavy technology exposure. The Japan ETF (EWJ) gained 0.94%. Declines appeared in the Brazil ETF (EWZ), down 1.87%, the Australia ETF (EWA), down 1.04%, and the Canada ETF (EWC), down 1.03%. The China ETF (MCHI) fell 0.85% and remains down 16.98% over the trailing year, the weakest one-year figure among the country markets shown.

Fixed Income and Commodities

Bond prices declined across maturities as yields moved higher over the week. The Long-Term Treasuries ETF (TLT) fell 2.38%, the largest drop in the fixed income group, while the Corporate Bonds ETF (LQD) declined 1.42% and the Intermediate Bonds ETF (IEF) fell 0.88%. The broad U.S. Aggregate Bond ETF (AGG) was off 0.85%, and the High Yield Bonds ETF (HYG) fell the same 0.85%. Shorter maturities held up best, with the Short-Term Bonds ETF (SHY) down just 0.04%.

Commodities and real assets also retreated. The Crude Oil ETF (USO) fell 3.53%, the Silver ETF (SLV) dropped 3.00%, and the Gold ETF (GLD) declined 1.95%. The broad Commodities ETF (DJP) was down a smaller 0.30%. The REITs ETF (VNQ) fell 1.23%, consistent with the softness in rate-sensitive equity sectors. Over the trailing year, several of these segments remain sharply higher, with the Crude Oil ETF (USO) up 94.25% and the Silver ETF (SLV) up 45.98%, illustrating how weekly moves can differ from longer-term trends.

Factor and Style Performance

Factor strategies isolate specific characteristics of stocks, and this week they reinforced the growth-led tone. Momentum, which tilts toward stocks that have recently outperformed, led with the Momentum ETF (MTUM) up 2.89%. The Growth factor ETF (VUG) rose 2.48% and the Quality factor ETF (QUAL), which favors profitable and financially stable companies, gained 2.04%. The Value factor ETF (VLUE) added a more modest 0.86%. Income-oriented factors lagged: the High Dividend ETF (VYM) fell 0.97%, the Dividend Growth ETF (SCHD) declined 0.63%, and the Low Volatility ETF (USMV) edged down 0.08%.

The style box told the same story along size and style lines. The Large Growth ETF (IWF) rose 2.40% while the Large Value ETF (IWD) added just 0.10%. Growth outpaced value in mid-caps as well, with the Mid Growth ETF (IWP) up 1.75% versus the Mid Value ETF (IWS) down 0.61%. Small-cap segments trailed broadly, with the Small Value ETF (IWN) down 0.93% and the Small Growth ETF (IWO) down 0.55%. Worth noting, the picture over the trailing year differs, where the Value factor ETF (VLUE) is up 66.13% and Large Value has outpaced Large Growth, a contrast to the week's growth leadership.

What This Means for Long-Term Investors

This week showed how concentrated leadership can be, as technology-driven gains in the S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ) sat alongside declines in small caps, longer-dated bonds, energy, utilities, and precious metals, a spread that helps explain why diversified portfolios rarely move in lockstep with the headline index and why any single week is a limited guide to longer horizons.