Wednesday, February 8, 2023
HomeMarketEnergy ETFs drop as investors weigh Russian oil cap, Fed concerns after...

Energy ETFs drop as investors weigh Russian oil cap, Fed concerns after fresh economic data

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Exchange-traded funds focused on oil and gas dropped Monday, as investors weighed a price cap on Russian oil as well as economic data prompting concerns that the Federal Reserve may need to keep up its aggressive monetary tightening for longer. Shares of the SPDR S&P Oil & Gas Exploration & Production ETF
XOP,
-4.64%
closed about 4.6% lower Monday, while the United States Oil Fund LP
USO,
-3.04%
finished down around 3% and the United States Natural Gas Fund
UNG,
-10.38%
tanked about 10.4%, according to data from FactSet. The Institute for Supply Management released index data Monday showing that the services sector in the U.S. was stronger than expected in November. The Fed has been raising interest rates to cool the economy in order to bring down high inflation. The energy ETFs suffered a steeper decline Monday than the broader U.S. stock market, with the Dow Jones Industrial Average
DJIA,
-1.40%
closing down 1.4%, the S&P 500
SPX,
-1.79%
dropping 1.8% and the Nasdaq Composite
COMP,
-1.93%
sinking 1.9%. That marked the biggest daily percentage drops for the S&P 500 and Nasdaq since Nov. 9, according to Dow Jones Market Data.

Credit: marketwatch.com

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