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Analyzing the S&P 500 and Energy Prices in July

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S&P 500’s performance 

The S&P 500 rose ~0.49% to 2,816.29 on July 31. Renewed trade negations between the US and China supported the S&P 500. Both of the countries are exploring ways to cool down the tariff war. The SPDR S&P 500 ETF (SPY) rose ~0.5% to $281.33 on July 31. SPY seeks to track the S&P 500 Index’s returns. The S&P 500 rose ~3.6% in July due to strong second-quarter earnings results.

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S&P 500 sectors 

Nine out of the 11 key sectors in the S&P 500 rose on July 31. The industrials, real estate, and healthcare sectors rose 2.2%, 1.9%, and 1.1%, respectively, on July 31. These sectors supported SPY the most on the same day.

The energy sector, which accounts for ~6.2% of the S&P 500, fell 0.2% on July 31. The Energy Select Sector SPDR ETF (XLE) fell ~0.2% to $77.12 on July 31. XLE represents the S&P 500 Index’s energy sector.

Crude oil 

Brent crude oil (BNO) futures fell 1.1% to $74.25 per barrel on July 31. September WTI oil (USO) futures fell 2% to $68.76 per barrel on July 31. Prices fell due to the rise in OPEC’s crude oil production in July. Brent and WTI crude oil prices fell ~6.5% and 7.3%, respectively, in July due to oversupply concerns.

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Natural gas 

September US natural gas (UNG) futures fell 0.5% to $2.78 per million British thermal units on July 31. Prices fell due to mild weather forecasts. US natural gas prices fell ~5% in July due to record US natural gas production. 

In this series

In this series, we’ll discuss the American Petroleum Institute’s US crude oil and gasoline inventories data, the US Dollar Index, and OPEC’s crude oil production.

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