Chart of the Day looks at how the stock market has responded to significant increases in gasoline prices over the past 25 years.
S&P500 following Gasoline Price Surges
Source: Chart of the Day
Its apparent the stock market struggles following a
year-over-year increase of more than 15%. Gasoline has increased well
over 15% over the past 12 months and has the potential of negatively
impacting consumer spending. For example, a recent California poll
shows that 40% have cut back on spending as a result of high gasoline
prices.
This is consistent with an Opinion Research Corporation survey cited by ICSC.org.
It showed that 58% of households are reducing their discretionary
spending on clothing, shoes, jewelry and consumer electronics, as well
as restaurants, spa and beauty services, and other nonessential
purchases.
Category: Commodities, Economy, Markets
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
S & P 500 Following Gasoline Price Surges
Barry Ritholtz:Chart of the Day looks at how the stock market has responded to significant increases in gasoline prices over the past 25 years….