Crude Reality: Energy Sector Becomes S&P 500's Worst Performer, Thanks To Trump's Tariff Turmoil

So much for “drill, baby, drill.” The energy sector is drilling all right – straight into red territory.

Down a bruising 11.47% over the past month, Energy, as tracked by the SPDR Energy Select ETF XLE, has officially become the worst-performing sector in the S&P 500. And investors have Donald Trump‘s tariffs – and falling oil prices – to thank.

For perspective, the SPDR S&P 500 ETF SPY is down just 0.91% over the past month.

Chevron, Halliburton, Occidental Down Over 15%

While the broader market treaded water, energy names went into free fall. Chevron Corp CVX shed over 16.73% this month, Halliburton Co HAL crashed 19.16% and Occidental Petroleum Corp OXY nosedived 18.25%.

APA Corporation APA is off a staggering 22.74%. Even shale poster child Devon Energy Corp DVN fell 16.31%. The carnage is deep and widespread.

Read Also: ConocoPhillips Vs. Occidental: Both Ride The Oil Wave, Only One Is Shaping The Tide

Brutal Blow To Trump’s Energy Dominance Agenda

The culprit? A toxic mix of plummeting crude prices – U.S. oil has slid below $65 – and trade policy uncertainty. Tariffs are rattling supply chains and investor confidence. Oilfield giants like Baker Hughes, SLB, and Halliburton have already warned of slowing investment in exploration and drilling, forecasting double-digit drops in North American activity, reported CNBC.

And they’re not shy about pointing fingers. “Tariffs are causing economic uncertainty,” Schlumberger NV‘s SLB CEO Olivier Le Peuch said last week. Baker Hughes Co BKR added that rising tariffs could slice as much as $200 million from earnings.

It’s a brutal blow to Trump’s energy dominance agenda, which had sought to unleash America’s oil might.

But with investors now prioritizing capital discipline and waiting for clearer policy signals, that plan might be on pause. As one American Petroleum Institute analyst put it, the industry’s most-used word lately? “Uncertainty.” For now, it’s the one thing Trump’s energy push is producing in abundance.

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