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S&P 500 and the Energy Sector Moved in the Opposite Direction

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S&P 500’s performance 

The S&P 500 rose ~0.3% to 2,733.29 on May 23 due to the rise in the utilities and real estate sector. On May 23, the Fed released the minutes for its meeting on May 2. The minutes highlighted that the Fed would increase the US interest rate gradually despite inflation rising at a faster pace. The meeting minutes supported the S&P 500 on May 23. Six out of ten key sectors in the S&P 500 advanced on May 23.

The SPDR S&P 500 ETF (SPY) rose ~0.3% to $273.37 on May 23. SPY aims to track the performance of the S&P 500 Index.

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S&P 500’s performance by sector 

The utilities, real estate, and technology sectors rose ~0.9%, 0.8%, and 0.7%, respectively, on May 23. These sectors supported the S&P 500 the most.

The energy sector, which accounts for ~6.4% of the S&P 500 Index, fell 0.01% on May 23. The Energy Select Sector SPDR ETF (XLE) fell ~0.01% to $77.85 on May 23. XLE represents the S&P 500 Index’s energy sector.

Sentiments 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 

July WTI oil futures fell ~0.4% to $71.84 per barrel on May 23. Prices fell due to profit-booking, an unexpected rise in US crude oil inventories, and record US crude oil production. The United States Oil ETF (USO) fell ~0.34% to $14.51 on May 23. USO seeks to track active WTI oil futures’ performance.

June US natural gas futures rose 0.2% to $2.91 per MMBtu (million British thermal units) on May 23. Prices rose due to warm weather forecasts. The United States Natural Gas ETF (UNG) rose ~0.8% to $23.9 on May 23. UNG seeks to track active natural gas futures.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) rose 0.1% to $18.18 on May 23. GSG aims to follow an index composed of a diversified group of commodity futures.

In this series  

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

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