Energy ETF On Track For Its Worst One-day Drop In About a Month

By Mark DeCambreMarketsMarketWatch Pulse

A popular exchange-traded fund used to bet on the energy sector on Tuesday was looking at its worst daily decline in about a month, according to FactSet data. The Energy Select Sector SPDR ETF was down 1.5% in recent trade, putting it on pace to log its steepest drop since May 25, when it fell 1.8%. The slump in the energy-focused ETF was led by sharp drops in TechnipFMC PLC , Schlumberger Ltd. and ONEOK Inc. , which were down at least 2.5%. 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 trading flat, but weighed by a 1.3% decline in shares of Chevron Corp. .

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