If past is prologue, stock market performance was poised to react to recent changes in the price of oil.

A trough in the price of crude oil often has coincided with the beginning of a recovery in the economy (The Relationship Between Oil Prices, Stocks, and Economy). If past is prologue, stock market performance was poised to react to recent changes in the price of oil.

And so it did, with the S&P 500 gaining 66.37% from April 2020 through May 17, 2021. During this same period, the price of West Texas Intermediate (WTI) crude oil increased 131% and the overall Energy sector gained 75.28%.

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