If crude oil is able to stabilize between $40 and $50 per barrel, that would be fantastic for both the economy and the stock market, Gluskin Sheff economist and strategist David Rosenberg said Tuesday on CNBC's "Futures Now."
First, lower crude oil prices reduce a major expense for many households and businesses. Second, stocks as a whole would cease being victimized by the uncertainty caused by free-falling crude.
"It's not just the fact that you're still going to have the lagged impact of having lower fuel costs being a positive for margins of the non-resource producers and for the household sector," Rosenberg said. "But I think for the broad market, if we were to find a bottom and then stabilize within a range … at least it would inject some certainty into the general market place."
Crude oil prices fell again on Tuesday, hitting a new multiyear low, before bouncing back significantly, even breaking positive at one point in the day. This has reinvigorated calls that crude oil has bottomed.