The Impact of Oil Prices on the U.S. Stock Market
These authors contributed equally.
- 10.2991/assehr.k.211209.012How to use a DOI?
- Oil prices; Stock returns; U.S. Stock Market
Oil is closely related to the world economy and is one of the most important materials in the commodity market. Its price fluctuation can directly affect the supply of the oil market, thus affecting world inflation. The US stock market can more reflect the world profit level and economic indicators. They are the key components of the world economy and an interesting research area, so we conducted this research. This study analysis and compare historical data of oil price and the U.S. stock market return. The price of crude oil does not affect the stock market directly, but it does affect U.S. stocks through indirect transmission. The analysis indicates that the oil price has little influence when it is stable, but it has more influence when it is volatile. A correlation can arise because changes in the crude oil price rate affect the outlook for a firm’s corporate profits and therefore affect the U.S. stock market performance. In addition, crude oil prices affect CPI and PPI, a leading measure of inflation, which in turn affects U.S. interest rates and corresponding affecting the US stock market.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Congqi Bai AU - Chenglin Gong AU - Ziyang Qiu AU - Yingjie Sheng AU - Tong Wu PY - 2021 DA - 2021/12/15 TI - The Impact of Oil Prices on the U.S. Stock Market BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 69 EP - 77 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.012 DO - 10.2991/assehr.k.211209.012 ID - Bai2021 ER -