A popular exchange-traded fund used to bet on the energy sector on Tuesday was looking at its worst daily decline in more than three months, according to FactSet data. The Energy Select Sector SPDR ETF
was down 2.2% in recent trade, putting it on pace to log its steepest drop since March 8, when it plunged 2.6%. The slump in the energy-focused ETF was led by sharp drops in Transocean Ltd.
, Hess Corp.
and Marathon Oil Corp.
which were down at least 4%. All of the index’s components were trading in the red, in early trade. The decline for the sector comes as crude-oil prices
sink to a seven-month low and are flirting with a close in bear-market territory, defined as a fall of at least 20% from a recent peak. Crude’s slump was putting pressure on the S&P 500 index
with the energy sector the worst performer among the benchmark’s 11 sectors, while the Dow Jones Industrial Average
was lower, weighed by a 1.6% decline in shares of Chevron Corp.
and a 1.3% fall in shares of Exxon Mobil Corp.