Investing.com - Financial Markets Worldwide

Will The S&P 500 Follow Crude Oil's Fall?

ByChris Kimble
Published 08/15/2019, 12:58 PM
Updated 07/09/2023, 06:31 AM
US500
-
CL
-
US10YT=X
-

S&P 500 Vs. Crude Oil Vs. 10-Year Bond Spread

This chart looks at the performance of the S&P 500, crude oil and the Yield on the 10-year note over the past 4 months.

Crude has declined about 14% more than the S&P 500 did during this time frame. Yields have declined, even more, around 36%. That is a huge spread between these assets over such a short period of time.

A Few Important Questions

  • Will the S&P 500 fall another 14% to catch up with crude oil's decline?

  • Will the S&P 500 fall another 36% to catch up with the decline in yields?

  • Have crude and yields dropped too far?

    • Odds are very high that these fish-mouth spreads will narrow, as spreads of this size historically narrow over time.

    Is it possible that the spreads will narrow from a decline in stocks and a rally by the other two?

    These days, anything is possible.

    Latest comments

    Loading next article…
    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2025 - Fusion Media Limited. All Rights Reserved.