The impact of oil price shocks on the U.S. stock market

Abstract

This paper focuses on the relationship between world oil markets and the U.S. stock market. In short how the changes of oil prices affect the trends of the U.S. stock market. We use the econometrics’ models to measure the relationship between the price of crude oil price and the U.S. composite index return and we believe that the volatility of oil price is an important factor that will indeed affect the U.S. stock market.