S&P 500 performance
The S&P 500 fell ~0.07% to 2,770.37 on June 7 due to the decline in technology stocks and global trade tariff tensions. Two of the ten major sectors in the S&P 500 declined that day. The SPDR S&P 500 ETF (SPY) fell ~0.01% to $277.37 on June 7. SPY seeks to follow the S&P 500 Index’s performance.
S&P 500’s sectoral performance
The technology and materials sectors fell 0.9% and 0.5%, respectively, on June 7. These sectors pressured SPY the most that day. The energy sector, which accounts for ~6.2% of the S&P 500 Index, rose 1.5% on June 7. It was the top percentage gainer among the major sectors in the S&P 500 that day. The Energy Select Sector SPDR ETF (XLE) rose ~1.5% to $77.05 on June 7. XLE represents the S&P 500 Index’s energy sector.
Apart from energy stocks directly impacting equity indexes, sentiments in the commodity and equity markets often impact each other, depending on the magnitude of the moves and various fundamental factors affecting each market.
July WTI crude oil futures rose 1.9% to $65.95 per barrel on June 7. Prices rose due to the decline in crude oil exports from Venezuela and speculation of no increase in OPEC’s crude oil production in the upcoming meeting. OPEC’s meeting is scheduled for June 22. The United States Oil ETF (USO) rose ~1.4% to $13.60 on June 7. USO aims to track the performance of active WTI crude oil futures.
July US natural gas futures contracts rose 1.2% to $2.93 per MMBtu (million British thermal unit) on June 7. Prices are near their highest level since January 31. Prices advanced due to a smaller build in US natural gas inventories compared with historical averages. The EIA (U.S. Energy Information Administration) released its data on June 7. The United States Natural Gas ETF (UNG) rose 1.1% to $23.70 that same day. UNG seeks to track active natural gas futures.
The iShares S&P GSCI Commodity-Indexed Trust (GSG) rose 0.9% to $17.55 on June 7. GSG seeks to track an index composed of a diversified group of commodities futures.
In this series, we’ll cover US natural gas inventories, production and consumption, and natural gas price forecasts.