Shares of energy companies slid into correction territory as investors retreated from cyclical stocks, in light of rising Covid 19 cases and a change in tone from the Federal Reserve.
The energy sector of the Standard & Poor's 500 has entered its third correction of 2021, falling more than 10% from its recent peak.
After months of leading the broad market, cyclical sectors have borne the brunt of a selloff since Fed Chairman Jerome Powell's somewhat sobering view of the economy and the latest wave of Covid 19 infections worldwide.
Weakness in energy and materials stocks have brought cyclical benchmarks near correction territory. The Russell 2000 index of small caps is trading about 8% below its record high marked earlier this year, on the cusp of what would be its first correction of the year.
Oil futures ticked up on Friday's session but finished with the largest weekly losses since March.
Over the past year, Iran has made significant advances in its ability to amass enriched uranium, complicating the Biden administration's effort to revive a 2015 deal aimed at curbing Tehran's atomic ambitions.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-16-21 1633ET
