People might also have the ability to invest MORE into stocks with the prices going down. I honestly think that the oil prices dropping is great, but I am worried that people will start to over use it again. We need to focus on the environment and the air, stocks are not what I am worried about.
While many resource companies could be hurt be falling oil prices, there are many industries that will see a benefit. In particular, consumers will have more money to spend on other things, so those industries should see a rise. This should result in an offset or saw-off in the stock market, where some stocks will go down and others will rise.
I do not think the oil prices will drive the stock market down over the next few weeks. The drop in gasoline prices in the US is doing a lot of stimulate the economy here and with the exception of a few industries is doing more good than harm overall.
Brokers are wondering if the prices of oil will drive down the stock market during the next four weeks. The connection between the stock market and the oil market was a valuable connection at one point, but it hasn't made that big of an influence over the past few month. It's unlikely the oil market will influence the stock market that significantly while the prices continue to move.