Friday, July 23, 2021
Energy stocks experienced a significant climb on Friday afternoon, while the S&P 500 struggled to find direction amidst a mixed performance across the broader U.S. stock market. According to FactSet data, the energy sector of the S&P 500 (SP500.10) surged by 2.3% as it approached the closing bell on Friday. In contrast, the S&P 500 (SPX) remained relatively flat during late afternoon trading. The Dow Jones Industrial Average (DJIA) slipped by 0.3%, while the technology-heavy Nasdaq Composite (COMP) saw a modest gain of 0.2%.
The surge in energy stocks can be attributed to the remarkable weekly gain in U.S. oil prices, which haven’t experienced such substantial growth since early April. On Friday, August delivery for CL00, CL.1, and CLQ23 rose by 2.9% to settle at $73.86 per barrel on the New York Mercantile Exchange. This closing price marks the highest level seen since late May.
Despite this positive momentum in the energy sector, energy stocks within the S&P 500 are expected to have a modest weekly decline of 0.5%, while the broader index is on track to fall by 0.9% based on FactSet data.
Stay tuned for more updates on the markets.