for Stock Markets
A good bit of the linkage between oil prices and the Dow is the result of general market sentiment, psychology, and knee-jerk reactions. At the same time, however, the fallout from the pain in the energy sector is touching large segments of the economy, including many major U.S. corporations with exposure to oil and gas.
Can low oil prices tip the economy into a recession? Not on their own, but the fact that a key sector that was instrumental in the post-2008 economic recovery is suffering is worrisome.
Oil prices and the stock market have a complex relationship, which has grown far closer in the years following the financial crisis.