uploads///image

Did Bearishness in Equity Markets Cause Oil’s Fall?

By

Apr. 9 2018, Updated 11:01 a.m. ET

US equity indexes

On March 29–April 6, 2018, US equity indexes had the following performances:

  • The S&P 500 Index (SPY) fell 1.4%.
  • The Dow Jones Industrial Average Index (DIA) fell 0.7%.
  • The S&P Mid-Cap 400 Index (IVOO) fell 1.3%.

Rising concerns about international trade dragged these equity indexes. In fact, the fall in the broader market could have also dragged oil prices. Sentiments in the oil and equity markets are often related. Approximately 5.5%, 5.2%, and 3.8%, respectively, of the equity indexes are energy stocks. US crude oil May futures fell 4.4% on March 29–April 6, 2018. In Part 1, we discussed the factors that caused US crude oil prices to fall.

Article continues below advertisement

On March 29–April 6, 2018, the Energy Select Sector SPDR ETF (XLE) fell 0.1%—the least on our list of SPDR ETFs. These ETFs break up the broad market’s performance into subsectors. In fact, all of the SPDR ETFs on our list closed in the red during this period. The Technology Select Sector SPDR ETF (XLK) fell 2.1%—the most among the subsectors.

Energy ETFs

On March 29–April 6, 2018, the performances of the subsectors in the energy sector were:

  • The VanEck Vectors Oil Services ETF (OIH) rose 0.1%.
  • The Alerian MLP ETF (AMLP) fell 0.2%.
  • The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) fell 1.6%.
Advertisement

More From Market Realist

  • Angels and Tomboys creators Mallory Iyana and Madison Star
    Miscellaneous
    'Shark Tank' Angels and Tomboys—e-Commerce to Brick-and-Mortar
  • David and Joanna Parker of Yumble
    Miscellaneous
    Meal Subscription Service Yumble Didn’t Tumble After ‘Shark Tank’
  • People looking at data on a laptop
    Miscellaneous
    Best Penny Stocks for Investors to Buy Below $5
  • Amish men and children in a buggy
    Miscellaneous
    Yes, Amish and Mennonite Communities Pay Taxes — Here's How
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.