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S&P 500 and Crude Oil Prices Diverged on May 11

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Updated

S&P 500’s performance 

The S&P 500 rose ~0.2% to 2,727.72 on May 11. The bullish momentum in healthcare stocks supported the S&P 500. Five out of the ten key sectors in the S&P 500 advanced on May 11.

The SPDR S&P 500 ETF (SPY) rose ~0.3% to $272.9 on May 11. SPY aims to follow the S&P 500 Index’s performance.

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S&P 500’s sectoral performance  

The healthcare, industrials, and consumer discretionary sectors rose 1.5%, 0.2%, and 0.2%, respectively, on May 11. These sectors supported the S&P 500 the most on May 11.

The energy sector, which accounts for ~6.2% of the S&P 500 Index, rose ~0.1% on May 11. The Energy Select Sector SPDR ETF (XLE) rose ~0.1% to $76.73 on May 11. XLE represents the S&P 500 Index’s energy sector.

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

Commodities

June WTI oil futures fell 0.9% to $70.7 per barrel on May 11. Prices fell due to profit-booking. The S&P 500 and crude oil prices diverged on May 11. The United States Oil ETF (USO) seeks to follow active WTI oil futures’ performance. USO fell ~1.1% to $14.3 on May 11.

June US natural gas futures fell 0.3% to $2.8 per MMBtu (million British thermal units) on May 11. However, the United States Natural Gas ETF (UNG) rose 0.3% to $22.95 on May 11. UNG aims to follow the performance of active natural gas futures.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) fell 0.7% to $17.8 on May 11. GSG seeks to follow an index composed of a diversified group of commodities futures.

Series overview  

In this series, we’ll discuss US gasoline demand and Cushing inventories. We’ll also discuss US crude oil rigs and some drivers for oil prices this week.

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