US equity index futures modestly red: Dow off ~0.4%
Euro STOXX 600 index off ~0.2%
Dollar, gold, bitcoin ~flat; crude up &gt;2.5%
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S&amp;P 500 ENERGY SECTOR STOKED FOR A STRONG 2026?
Energy (.SPNY) was a laggard among S&amp;P 500 (.SPX) sectors over the past couple of years. However, so far in 2026, there’s a fire burning under the group. Indeed, Energy is the top-performing sector so far this year.
This, with NYMEX Crude futures (CLc1) posting a 6% rise so far in 2026, and NYMEX Natural Gas futures (NGc1) surging more than 40%. In fact, Natural Gas futures, with a more than 70% surge just this week, are on pace for their biggest weekly gain ever.
The Energy sector scored a record close on Thursday and is now up 9.43% in January vs. a 0.99% rise for the overall S&amp;P 500. The group is on pace for its biggest monthly gain since March 2024, and on track to rise for a fifth straight week, which would be its longest weekly stretch of gains since an eight-week run that ended in early April 2024.
At Thursday’s close of 752.17, Energy is just 0.58% down from its 756.56 April 12, 2024, record intraday high.
Admittedly, the sector has struggled since 2022 in terms of sustaining strength above its 2008 and 2014 highs in the 678.84 to 738.71 area.
However, of note, Bollinger Band Width, a historical volatility measure, on a monthly basis, contracted to a 30-year low in 2025. It’s now ticking up in January.
Thus, SPNY would appear to have potential for much more spirited action, if not its next major trend, as what now may be a developing breakout to fresh record highs may lead to surprisingly strong upside momentum.
Meanwhile, Energy bulls are watching the group’s relative strength vs. the S&amp;P 500 closely. This comes as the SPNY/SPX ratio appears poised to once again challenge the resistance line from its 2008 high.
(Terence Gabriel)
<h3>EARLIER ON LIVE MARKETS: UK RETAIL SALES REBOUND IN DECEMBER, BUT OUTLOOK FRAGILE CLICK HERE EARNINGS CAN SHIELD EQUITIES FROM GEOPOLITICAL NOISE CLICK HERE EUROPE’S BANK BUYBACK BOOST FADING - UBS CLICK HERE SOFT END TO HECTIC WEEK CLICK HERE EUROPE BEFORE THE BELL: FUTURES LOWER, STOCKS SET FOR WEEKLY FALL CLICK HERE TRUMP’S ARCTIC PANTOMIME CHILLS THE DOLLAR CLICK HERE</h3>
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<img src="https://imageproxy.pbkrs.com/https://fingfx.thomsonreuters.com/gfx/buzz/egpbbgwdnpq/image-1769170744414.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="845" height="544" original-src="https://imageproxy.pbkrs.com/https://fingfx.thomsonreuters.com/gfx/buzz/egpbbgwdnpq/image-1769170744414.png"/>
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<img src="https://imageproxy.pbkrs.com/https://fingfx.thomsonreuters.com/gfx/buzz/byvrbadwyve/image-1769170393065.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="821" height="573" original-src="https://imageproxy.pbkrs.com/https://fingfx.thomsonreuters.com/gfx/buzz/byvrbadwyve/image-1769170393065.png"/>
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)

US equity index futures are slightly down, with the Dow off ~0.4% and Euro STOXX 600 down ~0.2%. The Energy sector of the S&P 500 is showing strong performance in 2026, with a 9.43% rise in January, outperforming the overall index. NYMEX Crude and Natural Gas futures have surged significantly, with Natural Gas up over 70% this week. The sector is nearing its record high and may be poised for further gains, as historical volatility measures indicate potential for a breakout. Energy bulls are closely monitoring the sector's strength relative to the S&P 500.

- US equity index futures show modest declines, with the Dow down approximately 0.4%.  
- The Energy sector emerged as the top-performing segment in early 2026, with a notable rise of 9.43% in January, along with significant increases in crude and natural gas futures.  
- Despite past struggles, the Energy sector may be on the verge of breaking past previous highs, indicated by a tightening Bollinger Band Width and improving relative strength against the S&P 500.

LIVE MARKETS-S&P 500 energy sector stoked for a strong 2026?