Industrial stocks ETF rises most in a month as oil prices decline

An exchange-traded fund whose holdings consists of large-cap industrial companies today rose the most in a month as oil prices fell, helping to ease investor concerns about inflation.

The Industrial Select Sector SPDR ETF (NYSEARCA:XLI) climbed 1.6% to close at $93.79 for the biggest gain since Aug. 10. The closing price was the highest since Aug. 29.

The gains came as oil prices plunged to the lowest since mid-January, more than a month before Russia’s invasion of Ukraine led to a surge in energy prices. U.S. oil futures (CL1:COM) fell 5.9% to end at $81.79 a barrel. Brent crude (CO1:COM), the global benchmark for oil, dropped 5.2% to close at $87.50.

Oil prices declined after China reported weaker-than-forecast trade data, spurring concerns about the health of the global economy. Adding to the selling pressure was a Wall Street Journal report that the Federal Reserve this month might hike interest rates by 0.75 percentage point to tackle inflation.

Industrial Select Sector SPDR Fund -Top Holdings as of Sept. 6 Company (Ticker) Closing price – Sept. 7 % change United Parcel Service (UPS) $196.29 0.17% Union Pacific Corp. (UNP) $228.79 0.36% Raytheon Technologies (RTX) $87.45 0.33% Honeywell International (HON) $189.09 1.88% Deere & Co. (DE) $365.94 1.35% Lockheed Martin (LMT) $420.14 0.56% Caterpillar (CAT) $180.86 0.11% Boeing (BA) $155.95 2.34% General Electric (GE) $73.58 1.97% Northrop Grumman (NOC) $487.78 1.68%

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