Major stock ETFs closed sharply lower as investors nervously eyed tumbling oil prices and next week's Fed meeting. Policymakers, whose remarks on interest rates roiled the markets, have entered into a quiet period heading into that event.
Industry sectors that got the hardest flogging Tuesday included metals and mining, as well as oil and gas.
SPDR S&P Metals & Mining ( XME ) forged a 4.8% loss and now sits 16% below its late July high.
SPDR S&P Oil & Gas Exploration & Production ( XOP ) dropped 4.3%.
Their banking peer SPDR S&P Bank ( KBE ) also finished lower, but recovered some of the morning's losses into the close.
Back-and-forth comments from Federal Reserve officials on the likelihood of a rate hike in September have whipsawed investors. That has hit one rate-sensitive equity asset class particularly hard: real estate.
Real Estate Select Sector SPDR Bank ( XLRE ) dropped 1.8% in early trading on the stock market today . Over the last five sessions, this exchange traded fund has lagged its 10 SPDR ETF peers also investing in S&P 500 sectors, giving up 5.8%.
IBD'S TAKE: Amid recent oil volatility, U.S. shale exploration and production companies as a group are outperforming large integrated oil companies. Read more about stock winners in the oil patch in the Industry Snapshot.
Oil prices crumbled Tuesday on a report from the International Energy Agency warning that investors may have to contend with the crude overhang through the first six months of 2017. The agency took note of both slowing demand growth and rising global supply.
WTI crude futures for October delivery settled 3% lower at $44.90 a barrel.
Spot gold and gold futures prices edged lower amid the rate uncertainty.
SPDR Gold Shares ( GLD ) has fallen in each of the last five sessions, losing support at the key 50-day moving average.
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12 Bellwether ETFs
Here's how major exchange traded funds across major asset classes performed today, with IBD Relative Strength Ratings.
The RS Rating is a measure of a stock's price performance over the last 12 months, compared with all stocks and ETFs, on a scale of 1 to a best-possible 99.
Following daily ETF market action can be key to successful investing:
SPDR S&P 500 (SPY), -1.4%, RS 51
PowerShares QQQ (QQQ), -0.9%, RS 59
SPDR Dow Jones Industrial Average (DIA), -1.4%, RS 51
IShares Core S&P Mid-Cap (IJH), -1.8%, RS 59
IShares Russell 2000 (IWM), -1.9%, RS 62
IShares MSCI EAFE (EFA), -2.0%, RS 39
Vanguard FTSE Emerging Markets (VWO), -3.7%, RS 73
SPDR Gold Shares ( GLD ), -0.7%, RS 68
United States Oil (USO), -2.5%, RS 16
IShares Core U.S. Aggregate Bond (AGG), -0.3%, RS 35
PowerShares DB U.S.$ Bullish (UUP), +0.4%, RS 26
IPath S&P 500 VIX Short-Term Futures (VXX), +13.2%, RS 1
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.