The May contract of US crude oil futures directly hit a negative number on the evening of April 20, with an overall decline of 300%, that is, it directly fell from around $20 to nearly $40. So does such a sharp drop in crude oil have an impact on the stock market? Where exactly is it? What is the impact of the crude oil slump on the stock market? The plunge in crude oil has mixed effects on the stock market. On the positive side, the plunge in crude oil is good for the transportation, aviation, logistics and locomotive sectors. These sectors themselves contributed a lot to the index, so the market benefited from the plunge in crude oil. On the negative side, the collapse of crude oil will lead to pressure on petrochemical, energy, chemical and coal industries, which contribute a lot to the index, so it will lead to a market decline. In this regard, the impact of the plunge in crude oil on the stock market is limited. The plunge in crude oil is not a unilateral negative or positive, because it affects many industries. For example, in the automobile industry, the continuous decline of crude oil may reduce the output of new energy vehicles and increase the output of fuel vehicles, which affects the development of an industry from one side. To sum up, the plunge in crude oil has a positive impact on the stock market, but it is good for China's economy, because we are a major crude oil importer in the world.