Here’s why the stock market is all about oil these days

Q: Why does the price of oil seem to have such a big influence on the stock market?

A: Our nation relies heavily on oil and other fossil fuels. And that is reflected by the stock market.

When oil and gasoline prices rise, consumers feel the hit almost immediately. Suddenly, they cringe as they see the numbers on the pump spin. With gasoline eating up a bigger piece of consumers’ budgets, they’re forced to cut back in other areas. That’s a big reason many retailers and other consumer discretionary companies, including restaurants, are feeling a pinch. And that’s been reflected in the share prices of those companies.

But it’s not just consumers who suffer from higher energy costs. Companies, too, are hit with what amounts to a huge tax increase