Oil Price Plunge Triggers Broad Sell-Off in Energy Stocks

Oil prices plummeted on Monday, sending energy stocks into a tailspin. The United States Oil Fund took the biggest hit, falling by 6% after crude oil dropped 5.7% to $84.25 per barrel and Brent slid 6.1% to $90.90.

This sharp decline in commodity prices is expected to impact products that track oil prices first, which is why the Energy Select Sector SPDR ETF was down by a smaller 2.5%. Energy shares, however, reflect expected profits over months and years, rather than just today's spot price.

Some energy companies are more resilient to falling oil prices due to hedging strategies or diversified businesses that benefit from cheaper feedstock. For instance, Baker Hughes bucked the trend by rising 3% after beating analysts' second-quarter earnings expectations.