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Crude Oil Prices and the S&P 500 Declined on May 31

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S&P 500’s performance  

The S&P 500 fell ~0.7% to 2,705.27 on May 31. The US government decided to impose taxes on metal imports from Canada, Mexico, and the European Union. The expectations of retaliatory measures from some of the trading countries pressured the S&P 500.

Nine out of ten key sectors in the S&P 500 declined on May 31. The SPDR S&P 500 ETF (SPY) fell ~0.6% to $270.94 on May 31. SPY aims to track the performance of the S&P 500 Index.

S&P 500’s performance by sector  

The consumer staples, industrials, and healthcare sectors fell ~1.6%, 1.5%, and 1.1%, respectively, on May 31. These sectors pressured the S&P 500 the most.

The energy sector, which accounts for ~6.1% of the S&P 500 Index, fell 0.8% on May 31. The Energy Select Sector SPDR ETF (XLE) fell ~0.8% to $76 on May 31. XLE represents the S&P 500 Index’s energy sector.

The 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 ~1.7% to $67.04 per barrel on May 31. The prices fell due to record US crude oil production. The United States Oil ETF (USO) fell ~2% to $13.55 on May 31. USO seeks to track active WTI oil futures’ performance.

July US natural gas futures rose 2.3% to $2.95 per MMBtu (million British thermal units) on May 31—the highest settlement since January 31. The prices rose due to the less-than-expected rise in US natural gas inventories. The United States Natural Gas ETF (UNG) rose ~2.2% to $23.9 on May 31. UNG seeks to track active natural gas futures.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) fell 0.8% to $17.7 on May 31. 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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