The Tell: This S&P 500 sector performs the best when crude oil is slumping

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Surging oil is bad news for telecommunications.

Oil enjoyed a multisession rally, pushing crude futures back into bull-market territory last week, but that has been bad news for one stock-market sector.

A seven-session win streak came to an end on Monday, but West Texas Intermediate crude trading on the New York Mercantile Exchange CLU6, -3.52%CLV6, -3.42% —the U.S. benchmark—was still up 20% from its Aug. 2 low.

Read: Oil futures snap 7-session win streak

Bullish stock-market traders are cheering, and rising energy prices might offer support to the shares of energy companies that have been hamstrung by plunging crude prices, but one sector among the S&P 500’s SPX, -0.04% 10 isn’t eager to applaud the oil rally: telecom.

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