Energy Stocks Perform Well When Interest Rates Rise
Robert R. Johnson
Energy stocks tend to perform well in a rising interest rate environment, outpacing the S&P 500's average gains when the 10-year Treasury yield rose above 2.74% as investors focus on their performance in the fourth quarter with the odds of the Federal Reserve raising interest rates increasing.
When the 10-year Treasury yield is too low, stocks in the S&P 500 energy sector decline compared to the benchmark.
Chang, Ellen, "Energy Stocks Perform Well When Interest Rates Rise" (2016). In the News. 1736.