Wall St Week Ahead: Red Sea tensions put focus on US energy stocks

The energy sector has slumped nearly 3% since late October, a period during which the S&P 500 has surged 16%. — Reuters

NEW YORK: A recent rally that has boosted nearly every corner of the US stock market has left energy shares behind, and bullish investors are betting upcoming earnings reports and rising geopolitical tensions could spark a rebound for the struggling group.

The energy sector has slumped nearly 3% since late October, a period during which the S&P 500 has surged 16%. The benchmark index rose 24% for all of 2023, while energy fell 4.8%, the second-largest drop last year among S&P 500 sectors.