While the broader market has rallied this year, energy has lagged. The S&P energy index fell 1.7 percent on Tuesday, and it is the only one of the ten primary sectors to be negative on the year. The Energy Select Sector SPDR ETF fell 1.9 percent to $84.43 while Chevron Corp fell 1.4 percent to $115.13.
The decline in oil “has an immediate effect on the energy sector, of course, but it also has implications for the broader market, reflecting a lack of demand,” said John Kosar, director of research with Asbury Research in Chicago. “With the market at record highs, you’d like to see oil do better since demand for oil indicates the economy is humming along.”
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