Historically there has been an inverse correlation between S&P 500 prices and crude oil, but in 2010 the economic recovery pushed the stock indexes up and the prices of crude oil, especially in the United States. In 2017, stock markets and oil prices have moved in unison, a rare coupling that highlights growing fears about the health of the global economy. The volatility of crude oil continues to cloud global stock markets. In a year and a half, Brent's barrel has lost two-thirds of its value. But traditionally, what is the relationship between these two values? Variations in the price of oil have substantial effects on the economy, but in the case of the stock market they often operate in opposite directions or affect actors who are too different from the stock market (Jones and Kaul 2012, p. 92). Changes are often more circumstantial than applicable to theory.
When crude oil prices increase, the value of S&P 500 rises as well and this may be due to the influence of various economic variables. The relationship between crude oil prices and S&P 500, in general, has been widely analyzed and tested
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The stock markets began to sink, the economies too became declined and logically the price of oil too as the demand for oil decreased drastically due to the global crisis. The correlation became positive. However, this is a correlation, not causality. In 2008, oil and the stock market fell apart because there was a crisis for both (fewer buyers). Beginning in 2012, S&P 500 began to recover, oil prices began to increase, and the correlation disappeared. In the summer of 2015 oil prices began to drop and the value of S&P 500 remained relatively unchanged. When oil prices collapsed in the first weeks of 2016, the world's major stock indexes recorded one of the worst starts of the year in history. Brent, the international market benchmark, fell by 5.2% to $ 30.50 a barrel while U.S crude CLc1 dropped 7.6% to $29.75 a