S&P 500 performance
The S&P 500 fell ~2.2% to 2,581.88 on April 2, 2018, due to the decline in technology stocks and renewed trade war concerns after China imposed tariffs on US goods. The index has been struggling since January 26, 2018. All of the 11 major sectors in the S&P 500 fell on April 2, 2018.
The SPDR S&P 500 ETF (SPY) fell ~2.1% to $257.5 on April 2, 2018. SPY follows the performance of the S&P 500 Index.
The consumer discretionary, IT, and consumer staples sectors fell 2.8%, 2.5%, and 2.5%, respectively, on April 2, 2018. These sectors pressured SPY the most on April 2, 2018.
The energy sector fell 2% on April 2, 2018, which accounts for ~5.7% of the S&P 500 Index. The Energy Select Sector SPDR ETF (XLE) fell ~2% to $66.06 on April 2, 2018. XLE represents the energy sector of the S&P 500 Index. Bearish momentum in the crude oil market could have also pressured US equity markets on April 2, 2018. However, the bullish sentiment in US equities has supported commodities like crude oil in the past.
WTI crude oil futures contracts for May delivery fell 3% to $63.01 per barrel on April 2, 2018—the lowest settlement since March 20, 2018. Prices fell due to the rise in Russian and US crude oil production. The United States Oil ETF (USO) fell 2.6% to $12.74 on April 2, 2018. USO replicates US crude oil’s performance.
US natural gas futures for May delivery fell 1.8% to $2.68 per MMBtu (million British thermal unit) on April 2, 2018, due to profit-taking. The United States Natural Gas ETF (UNG) fell 2.2% to $22.04 on April 2, 2018. UNG follows natural gas prices.
The iShares S&P GSCI Commodity-Indexed Trust (GSG) fell 1.6% to $16.38 on April 2, 2018. GSG tracks an index composed of a diversified group of commodities futures.
US Dollar Index
The US Dollar Index and commodities like crude oil and gold are usually inversely related. The US Dollar Index rose ~0.1% to $90 on April 2, 2018. The Power Shares DB US Dollar Bullish ETF (UUP) fell 0.04% to $23.6 on April 2, 2018. UUP tracks the Deutsche Bank Long USD Currency Portfolio Index – Excess Return.
In this series
In this series, we’ll discuss Russia and US crude oil production. We’ll also discuss US crude oil exports and some crude oil price forecasts.