S&P 500’s performance
The S&P 500 fell ~1.2% to 2,689.86 on May 29, marking the largest one-day decline in a month. Concerns about political uncertainty in Italy and the Eurozone pressured US bank stocks—which, in turn, pressured the S&P 500. Eight of the ten key sectors in the S&P 500 declined on May 29.
The SPDR S&P 500 ETF (SPY) fell ~1.2% to $269.
S&P 500 performance by sector
The financials, materials, and industrials sectors fell ~3.3%, ~1.8%, and 1.6%, respectively. These sectors pressured SPY the most.
The energy sector, which accounts for ~6.1% of the S&P 500 Index, fell 0.36%. The Energy Select Sector SPDR ETF (XLE) fell ~0.3% to $74.31. XLE represents the S&P 500 Index’s energy sector.
Sentiment in the commodity and equity markets could affect each other, depending on the magnitude of the moves and various fundamentals for each market.
July WTI crude oil futures contracts fell 1.7% to $66.73 per barrel on May 29. Prices fell due to speculation of higher production from Saudi Arabia and Russia. The United States Oil ETF (USO) fell 1.2% to $13.51 on May 29. USO aims to track active WTI oil futures’ performance.
July US natural gas futures fell 2% to $2.9 per MMBtu. Record natural gas production pressured natural gas prices. The United States Natural Gas ETF (UNG) fell 2.1% to $23.47. UNG seeks to follow active natural gas futures’ performance.
The iShares S&P GSCI Commodity-Indexed Trust (GSG) fell ~1% to $17.5. GSG seeks to track an index composed of a diversified group of commodities futures.
In this series, we’ll discuss OECD crude oil inventories and the global oil supply outage. We’ll also discuss the US dollar index and Iran’s crude oil production.