The Materials Select Sector SPDR ETF (XLB), which tracks the performance of the material sector, showed a weaker performance in March 2017. It fell nearly 1.6% in March 2017. Dow Chemical (DOW), Monsanto (MON), Praxair (PX), and Ecolab (ECL) returned 0.12%, -2%, -1.4%, and -0.4%, respectively, in March 2017.
The stronger dollar (UUP) hampers the performance of the material sector. The dollar index fell nearly 1.4% in March 2017. However, major material stocks showed negative performances in that month, indicating that despite the dollar index movement, other market forces are also impacting the performance of the materials sector.
Various market forces also impacted the performance of the material sector. The overall falling market sentiment dragged down the performance of the material sector. In the previous part, we discussed that crude oil (USO) (UCO) prices fell for six consecutive trading sessions in March. The continuous fall in crude oil prices also created a panic situation in investors’ minds.
The broader S&P 500 Index fell nearly 1.4% in March 2017. The Dow Jones Industrial Average (DIA) and the NASDAQ Composite (COMP-INDEX) returned nearly -2.1% and 0.1%, respectively, in March 2017.
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