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How Did the G-20 Meeting and Crude Oil Affect SPY’s Movement?

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SPY fell marginally as crude oil prices dropped slightly

On Friday, February 26, 2016, the SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull 3x ETF (SPXL) tumbled by 0.23% and 0.62%, respectively. Stocks opened positively as crude oil prices rose 1%. However, at the end of the trading day, stocks closed slightly lower as crude oil prices fell marginally. This shows that crude oil is one of the major Market drivers in the current environment. However, the Energy Select Sector SPDR Fund (XLE) rose 0.6% on the day. Major energy stocks such as ExxonMobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) posted returns of -0.32%, -1.1%, and 0.22%, respectively, on the day.

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G-20 meeting

G-20 leaders met in China on Friday, February 26, 2016. All the countries’ major leaders and finance heads were present. The world leaders discussed issues related to the yuan devaluation. China, a major trading partner for most of the developed (EFA) and emerging countries (EEM), said it will not significantly devalue the yuan.

United States 4Q15 GDP showed signs of a pickup

The United States’ fourth quarter revised GDP (gross domestic product) stood at 1%, which was above analysts’ consensus estimate of 0.4%. Consumer spending also showed signs of a pickup in the fourth quarter of 2015. Despite these results, markets tumbled on Friday ahead of the G-20 meeting in China.

What to look for in this series

In this series, we’ll discuss which sectors drove SPY’s movement and why. We’ll close the series with a look at SPY’s top performer. Let’s start by looking at how the various sectors performed on February 26.

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