Liam Denning, Columnist

Energy Is 1% Away From Losing Power to Power

The sectors may swap places in S&P 500 weighting very soon.

February 26, 2020 at 1:28 PM UTC

Liam Denning is a Bloomberg Opinion columnist covering energy. A former banker, he edited the Wall Street Journal’s Heard on the Street column and wrote the Financial Times’s Lex column.

On the rise.
Photographer: SEBASTIEN BOZON/AFP/Getty Images

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How bad is it in the energy sector right now? Its weighting in the S&P 500 is on the verge of falling below the utilities sector for the first time ever. You know, that boring poles-and-wires industry. If in the Houston area, it is recommended you don’t bring this up in polite conversation.

The two sectors closed out a Tuesday to forget with weightings barely 4 basis points apart. All else equal, for energy to shrink below the weighting of utilities, oil and gas stocks need only drop another 1.2% 1. The sector’s down almost 9% so far this week.

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