discussions about stock plunge as oil surges to new higs?

Answer 1

The KEY to understanding the relationship between the stock markets and oil is this: Markets don't like uncertainty.

I tell my students to ask themselves if the news is good or bad? If the news is good, the financial markets will react positively by rising. Otherwise, they'll fall.

Would you consider surging oil prices to be good news for the consumer? NO! It causes gas prices to rise, which eat into the money consumers would spend on other things. Therefore the financial markets would react negatively by falling.