Oil Spikes, Stocks Suddenly Dump During Warsh Hearing

It’s unclear what exactly is driving but the markets are reverting back to old habits this morning with oil spiking…

…dragging Treasury yields higher…

Stocks are tanking…

And so is gold…

There were no obvious geopolitical headline catalysts for the move – though uncertainty remains high about the next 24-48 hours in the Middle East.

Some have suggested the following comment from Fed Chair nominee Kevin Warsh may have helped (or hindered): “There’s probably no more pressing question than the cost of living.”

Though that does seem like fitting a narrative after the move, the odds of a rate-cut have deteriorated rapidly…

Developing…