Crude Oil Prices Directly Impact US Stock Market Stability
The study looked at the relationship between WTI oil prices and the US stock market, finding no long-term connection but a short-term influence of oil on stocks. The research suggests that stable oil prices are important to prevent stock market instability, which can harm the economy. The study used data from 1990 to 2021 and found that oil prices impact stocks, but not the other way around. This information is important for policymakers, investors, and financial market participants.