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Energy Sector Drove the S&P 500 on April 18

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S&P 500’s performance  

The S&P 500 rose ~0.1% to 2,708.64 on April 18, 2018. The index rose slightly due to bullish momentum in the energy and industrial sectors. Five out of ten major sectors in the S&P 500 rose on April 18, 2018.

The SPDR S&P 500 ETF (SPY) rose ~0.1% to $270.37 on April 18, 2018. SPY aims to follow the performance of the S&P 500 Index.

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S&P 500’s sectoral performance 

The energy, industrials, and materials sectors rose 1.5%, 1%, and 0.7%, respectively, on April 18, 2018. These sectors supported the S&P 500 the most on April 18, 2018.

The energy sector accounts for ~6% of the S&P 500 Index. The Energy Select Sector SPDR ETF (XLE) rose ~1.5% to $73.56 on April 18, 2018. XLE represents the S&P 500 Index’s energy sector.

The sentiment in the commodity and equity markets could impact each other depending on the magnitude of the moves and various fundamental factors affecting each market.

Commodities 

May 2018 WTI oil futures contracts rose 2.9% to $68.47 per barrel on April 18, 2018—the highest settlement since December 1, 2014. Prices rose due to the larger-than-expected decline in US crude oil inventories and geopolitical tension. On April 20, 2018, major oil producers will meet in Jeddah to discuss extending the ongoing production cuts, which supported oil prices. The United States Oil ETF (USO) rose ~3.5% to $13.88 on April 18, 2018. USO aims to follow active WTI oil futures’ performance.

May 2018 US natural gas futures were almost flat at $2.73 per MMBtu (million British thermal units) on April 18, 2018. The United States Natural Gas ETF (UNG) rose 0.04% to $22.61 on April 18, 2018. UNG aims to follow active natural gas futures.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) rose 2.3% to $17.47 on April 18, 2018. GSG aims to track an index composed of a diversified group of commodities futures.

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US Dollar Index  

The US Dollar Index rose ~0.1% to 89.6 on April 18, 2018. The Power Shares DB US Dollar Bullish ETF (UUP) rose ~0.2% to $23.51 on April 18, 2018. UUP aims to track the performance of the Deutsche Bank Long USD Currency Portfolio Index – Excess Return. The US Dollar Index and commodities, like crude oil and gold, are usually inversely related.

In this series  

In this series, we’ll discuss crude oil’s bearish and bullish drivers.

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