These 3 Factors Are Whipsawing Wall Street and Bitcoin
Wall Street logged its third consecutive losing session Tuesday. Fresh U.S. strikes on Iran sent oil surging, and CNBC's Jim Cramer says three forces now keep the market, including Bitcoin, volatile.
The Dow fell 419 points and the Nasdaq dropped 1%. Both slides reflect geopolitical shocks, bond market stress, and a hawkish new Fed chair. The 10-year Treasury yield climbed to 4.79%.
Three Forces Rattling Wall Street
The first of the three factors is Iran. Renewed U.S. strikes near the Strait of Hormuz pushed Brent crude up 4.6% to $95.70 a barrel Tuesday evening. U.S. crude closed above $90 for the first time in over a month.
Cramer says the pattern keeps repeating as Iran's latest Hormuz threat resurfaces whenever ceasefire hopes fade.
The second factor is the Federal Reserve. Federal Reserve Chair Kevin Warsh has signaled he would raise rates even at the cost of a recession.
Cramer compares him to former Fed Chair Paul Volcker, another inflation hawk. Traders now put the odds of a September rate hike at 66%, up from about 40% a week earlier.
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