Why? When crude oil stays pinned at USD 95, it transmits a massive price impulse straight through the Consumer Price Index or CPI & Producer Price Index (PPI) metrics.
Kevin Warsh has warned that financial conditions are not restrictive enough. Surging oil gives him a mandate to push the September interest rate hike probability to over 70%.
Higher interest rates drive up global bond yields. The market drops today not because corporate earnings are bad, but because higher macro yields negatively impact tech stocks.
Let's hope that Trump will do a TACO & things will calm down.
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- frostiยท09-02 17:33Yep, hike odds can jump fast, but the real transmission is the 10Y. If oil pins CPI higher and the 10Y breaks 4.8%, tech probably has another leg down1Report
- 1PCยท09-02 13:39Nice Sharing ๐ TACO ๐ฎ Time ๐ @Barcode @JC888 @Aqa @DiAngel @Shyon @Shernice่ปๅฌฃ 20001Report