Rising energy prices have offered good news to the shares of energy companies that have been hamstrung by plunging oil prices. In contrast, though, one sector among the S&P 500 isn’t eager to applaud the oil rally: telecommunications.
Telecom stocks have performed the worst among the S&P 500’s ten sectors since August 2, when oil prices bottomed out. According to S&P Dow Jones Indices, for every 1 percent increase in the price of oil, the telecom sector declines by two-tenths of a basis point.
The energy and materials sectors are the most obvious beneficiaries of gains in crude oil prices. More surprisingly, the technology sector also benefits: It rises an average of 21 basis points for every percentage point climb by crude.
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