Graph of this issue: https://pbs.twimg.com/media/DfdD_T3W4AwP6nO.jpg
Historically, crude oil prices and the S&P 500 index have influenced each other. Crude oil (USO) prices have been falling since June 2014. The correlation of the S&P 500 index and crude oil was highest when crude fell below $30, and lowest when crude oil was at around $100.
Oil is an important driver of the world economy. Energy demand constitutes a significant portion of US consumer spending. Equities and crude oil move in a cycle. A sudden rise in prices pressurizes consumer spending and strains economic growth in consuming nations. On the other hand, a sudden fall in crude oil prices could indicate a slowdown in economic activity. Plus, a sharp drop in crude oil prices could affect other industries that support it, employment in the sector, and the financial sector that lends to it.
Do you think this correlation between S&P 500 sales growth and the oil price will continue for many years in the future?
Submitted June 13, 2018 at 04:07PM by gorillaz0e https://ift.tt/2HMPHcy
