Why does european crisis affect US stocks?

For the past few weeks I've seen the stock indexes go up and down due to waivering confidence of Greece debt crisis. Why is it that europe affect US stock market? What is the direct relationship between the two?





Which industries are most affected by it, or un affected by it? I just can't see a direct relationship between Coca Cola and europeon debt... I'm no investor or a finance professional so I was hoping someone could help me understand. Thanks!!|||Because whole world economy connected with each other some times some crises accure some were and other country affect with them.|||Indications that Europe will be able to tackle its debt crisis and shrinking crude stockpiles in the US combined to send oil soaring to its highest price in more than three months in New York. Another reason for the surge in oil prices was speculation regarding the threat to Middle East stability due to Iran鈥檚 nuclear plans. Greece and Italy are fighting their own battles to face their debt situations with political stability and possibly they will be able to tide over the crisis.|||For a couple reasons. One, US banks have a lot of exposure to Europeans banks %26amp; countries. If they default it will affect US negatively.





Further, since Europe is in a lot of problems, a lot of investors want to move their money out of Euro, so they buy up USD or US stocks.





However, this is only short term, the US will topple soon after Euro does like dominos. If their is a QE3 though, this will increase US indices, however, due to the devaluation of the USD, an increase in US indices doesn't mean that the economy is doing well, it just means the USD has been deflated %26amp; is worth less.





Hope this helps.|||From what I hear, we will be going in to another Great Depression soon if people don't wake up.