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S&P 500 and Commodities Rose on April 5

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Aug. 18 2020, Updated 9:29 a.m. ET

S&P 500 performance 

The S&P 500 rose ~0.7% to 2,662.84 on April 5, 2018, due to the easing concerns about a trade war between the US and China. However, the index has been struggling since January 26, 2018. Ten of the 11 major sectors in the S&P 500 rose on April 5, 2018.

The SPDR S&P 500 ETF (SPY) rose ~0.8% to $265.64 on April 5, 2018. SPY aims to follow the S&P 500 Index’s performance.

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Sectoral performance  

The materials, energy, and consumer discretionary sectors rose 1.9%, 1.8%, and 1.4%, respectively, on April 5, 2018. These sectors supported SPY the most on April 5, 2018.

The energy sector accounts for ~5.8% of the S&P 500 Index. The Energy Select Sector SPDR ETF (XLE) rose ~1.8% to $68.59 on April 5, 2018. XLE represents the S&P 500 Index’s energy sector.

The sentiment in equities and commodities markets can impact each other depending on the magnitude of the moves and various fundamental factors affecting each market.

Commodities

WTI (West Texas Intermediate) crude oil futures for May delivery rose 0.27% to $63.54 per barrel on April 5, 2018. Prices rose due to easing concerns about a trade war between the US and China. The United States Oil ETF (USO) rose ~0.1% to $12.83 on April 5, 2018. USO aims to track active WTI oil futures’ performance.

US natural gas futures for May delivery fell 1.6% to $2.67 per MMBtu (million British thermal unit) on April 5, 2018. Prices fell due to mild weather forecasts and a rise in US natural gas production. The United States Natural Gas ETF (UNG) fell 1.1% to $22.09 on April 5, 2018. UNG aims to track active natural gas futures.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) rose 0.43% to $16.5 on April 5, 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 appreciated ~0.4% to $90.46 on April 5, 2018. The Power Shares DB US Dollar Bullish ETF (UUP) rose 0.38% to $23.72 on April 5, 2018. UUP tracks 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.

Series overview  

In this series, we’ll discuss US natural gas inventories, production and consumption, and natural gas price forecasts.

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