2 Jul

Less Global Stress: Crude Oil and the S&P 500 Rose on June 28

WRITTEN BY Gordon Kristopher

S&P 500’s performance 

The S&P 500 rose ~0.6% to 2,716.31 on June 28. The rise in technology and consumer services stocks supported the S&P 500. Nine out of the 11 major sectors in the S&P 500 rose on June 28.

The SPDR S&P 500 ETF (SPY) rose ~0.6% to $270.89 on the same day. SPY seeks to follow the S&P 500 Index’s performance. E-Mini S&P 500 futures rose 0.24% from the previous settlement in early morning trade on June 29.

Less Global Stress: Crude Oil and the S&P 500 Rose on June 28

S&P 500’s sectoral performance 

The technology, consumer services, and real estate sectors rose 1.2%, 1%, and 0.99%, respectively, on June 28. These sectors supported SPY the most on the same day.

The energy sector, which accounts for ~6.2% of the S&P 500, fell 0.13% on June 28. The energy sector was the top percentage loss among the major S&P 500 sectors on the same day. The Energy Select Sector SPDR ETF (XLE) fell ~0.13% to $75.47. XLE represents the S&P 500 Index’s energy sector. 

Commodities 

However, August WTI crude oil (USO) futures rose ~1% to $73.45 per barrel on June 28. USO was at the highest level since November 2014. The prices rose due to the crude oil supply outages in Libya and Canada, a huge decline in US crude oil inventories, and record US crude oil exports. Sanctions on Iran and a chronic mismanagement-driven oil production decline in Venezuela also helped oil prices.

August WTI crude oil futures fell 0.3% from the previous settlement in early morning trading on June 29.

August US natural gas (UNG) futures contracts fell 1.4% to $2.94 per MMBtu (million British thermal units) on June 28. Prices declined due to estimates of record US natural gas production. August US natural gas futures contracts fell 0.1% from the previous settlement in early morning trade on June 29.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) rose 0.23% to $17.67 on June 28. GSG seeks to track an index composed of a diversified group of commodities futures.

Series overview 

In this series, we’ll discuss US natural gas inventories, production and consumption, and natural gas price forecasts.

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