Chart of the Day looks at how the stock market has responded to significant increases in gasoline prices over the past 25 years.
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
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