Why would the stock market react negatively to the increased supply and lower price of oil? Isn’t cheaper energy good for all including oil producers who created the supply shift?
While it is true that lower prices at the pump benefit consumers, stock markets also infer that low oil prices signal weak demand for oil, in this case from travel-related fears due to the corona virus. And weak demand for oil often indicates weak demand for other items such as eating out, travel, going to movies, and so on. Since 70% of GDP is consumption, anything that is expected to hurt consumption is bad news for the stock markets.