Oil prices above $110 are starting to matter to the stock market again

Oil is starting to matter to the stock market again. Stocks have had a curious relationship to oil prices over the last month, with the two assets rising in tandem. Since the close of April 8 , around when President Donald Trump announced a fragile ceasefire with Iran, the S & P 500 rallied 7.2%, while WTI crude futures jumped more than 8%. Part of the enthusiasm around stocks has to do a strong earnings season that revived investor confidence in the artificial intelligence narrative. Now, however, it seems that stocks and oil are starting to move opposite one another again. On Tuesday, stocks rose as oil prices slid on hopes of a more permanent resolution on the warfront; on Monday, stocks fell as oil rose on fears of an escalating conflict. Brent crude futures were last above $110 a barrel, even after sliding more than 2% on Tuesday. "Markets are anticipating further easing in geopolitical tensions, helping to soften the drag higher oil prices exert on equities," Adam Turnquist, chief technical strategist at LPL Financial, wrote last week. "Still, oil prices remain elevated at uncomfortable levels, and extending the equity rally will likely depend on additional de-escalation." Indeed, the correlation between the two assets is the most inverted it's been in 20 years, on a rolling 60-day basis. …