Shares of Chesapeake Energy Corp. sank to a fresh 20-year low, pulled down by selloffs in crude oil prices and the broader stock market. The oil and gas company’s stock fell 6.9%, putting it on track to close at the lowest level since April 12, 1999. Weighing on the stock, continuous crude oil futures dropped 4.4%, following data showing U.S. crude inventories increased for a second straight week. There was also concerns over demand for oil, as the drop in longer-term Treasury yields below yields on shorter-term Treasurys stoked recession fears. The selloff in Chesapeake’s stock comes as the SPDR Energy Select Sector ETF lost 3.4%, enough to pace the SPDR ETFs that tracked the 11 key S&P 500 sectors, with all 29 components trading lower. Chesapeake’s stock has now shed 47% over the past three months, while the energy sector ETF has declined 11% and the S&P 500 has edged up 0.7%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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