Market Extra: Could the crude oil market bust spell trouble for high-flying U.S. stocks?

Market Extra: Could the crude oil market bust spell trouble for high-flying U.S. stocks?

The implosion of crude oil markets in the past week holds a mirror to the broader distress in the U.S. and global economy.. The issue for business earnings, economic growth and stock market values is that the U.S. is more dependent on consumer spending than some other economies.. Equity investors are looking past the current corporate earnings slump in anticipation of economic growth rebounding later this year, as the lockdowns are slowly lifted and recently announced massive government and Federal Reserve fiscal and monetary stimulus recharges demand.. Crude oil prices have fallen to 20 year lows, with the now-expired Nymex May contract for West Texas Intermediate crude. The slide in crude oil prices also reflects quirks unique to commodity markets, complicating any analysis using energy prices to deduce the U.S.'s economic prospects, said Hoffmann.. Though oil demand shrunk rapidly due to the coronavirus pandemic, the price war started by Saudi Arabia and Russia began the slump in oil prices, and producers have been slow to shut down drilling rigs to help supply match the collapse in demand.. "The oil market is on its knees," said Tim Magnusson, senior portfolio manager for Garda Capital Partners, told MarketWatch.. Read: The oil