Is the high cost of gasoline causing the stock market , interests rates or the economy to suffer in any way?
(Is there a small chance that the stock market , interest rates, and the economy could actually suffer because of the high price of gas?）
Answer ：
The stock market is the most affected. I check the business news every day, and when oil prices rise significantly, the stock market usually goes down. And it makes sense- the more money consumers are paying for gas, the less money they have to purchase other things that the companies that make up the stock market are selling. It also has small negative effect on the economy, because consumers are cutting back their spending. Not sure about interest rates, though.
Posted: July 27th, 2010 under US Stock Market.
Tags: gasoline causing the stock market, Stock market