$Tesla Motors(TSLA)$ $Shopify(SHOP)$ $Block(SQ)$ Higher oil price leads to a higher cost for goods and inflation. Higher inflation forces the Fed to raise interest rates and keep them high longer. Higher interest rates and high inflation result in a tightening of the credit market and a reduction in discretionary spending. A reduction in discretionary spending and an increase in inventory leads to a recession. Companies typically experience lower revenue and profits during a recession which results in their share prices going down.
US Stocks Opportunities
Here are a theme that collects the best quality or your most bullish US stocks, Share your thoughts here!
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