Market Reacts to Treasury Adjustments

Bond yields experienced an uptick on Thursday morning, largely reversing the brief respite seen the previous day. This shift followed the Treasury Department's announcement regarding an increased pace of purchasing longer-dated government debt. The volatility in long-term Treasury yields has predictably unsettled the stock market, yet certain sectors may find themselves in a favorable position.

CNBC Pro, leveraging LSEG data, conducted a screen of the S&P 1500. The objective was to identify stocks exhibiting the most robust negative 60-day correlation with the iShares 20+ Year Treasury Bond ETF (TLT). The TLT ETF is a benchmark for long-term U.S. government debt, specifically those with maturities exceeding 20 years. Consequently, stocks with a strong inverse correlation to TLT tend to appreciate as yields rise and Treasury prices fall.

Energy Sector Takes Center Stage

The energy sector overwhelmingly dominated the list of potential beneficiaries. ConocoPhillips (COP) demonstrated the strongest inverse relationship, recording a 60-day correlation of negative 0.65 with TLT. Following closely were Permian Resources (PR) and ExxonMobil (XOM), each with a correlation of negative 0.61.

Further reinforcing this trend, Chord Energy (CHRD) and Chevron (CVX) both posted 60-day correlations of negative 0.59. Devon Energy (DVN), headquartered in Houston, registered a negative 0.58, while Occidental Petroleum (OXY) followed at negative 0.57.

The pattern extended across the broader industry, with SM Energy (SM) and Ovintiv (OVV) each showing correlations of negative 0.56. EOG Resources (EOG) and Viper Energy (VNOM) were also found to move in the opposite direction to TLT, with correlations of negative 0.55.

Additional prominent names like APA Corporation (APA), Diamondback Energy (FANG), and Matador Resources (MTDR) also exhibited inverse movements relative to the TLT ETF.

Broader Economic Factors at Play

The concentration of oil companies on this screen coincides with ongoing uncertainties surrounding supply constraints through the Strait of Hormuz. Elevated oil prices can positively impact the earnings outlook for oil producers. However, they simultaneously contribute to inflation concerns, which can exert downward pressure on Treasury prices and, consequently, drive yields higher.

Beyond the energy sector, other commodity-related companies also appeared on the screen. Chemical manufacturer LyondellBasell (LYB) posted a negative 0.51 correlation with TLT, while Dow Inc. (DOW) followed with a negative 0.49.

— CNBC's Nick Wells contributed reporting to this article.