My take on why the market is down. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$
Treasury yields pushed higher, with the 10-year moving above 5%, putting pressure on growth and tech stocks.
Oil prices are climbing again, raising concerns about inflation and the impact of the Iran situation. $BREAKWAVE TANKER SHIPPING ETF(BWET)$ $Breakwave Dry Bulk Shipping ETF(BDRY)$
Meanwhile, stronger-than-expected economic data is creating another problem: investors are questioning whether the Fed can ease rates as quickly.
Stocks recently pushed toward record highs, so investors are taking some profits.
The selloff looks like a combination of higher yields, higher oil, inflation concerns, Iran uncertainty, Fed rate expectations, and profit-taking after a strong run.
The big thing to watch now is the 10-year Treasury yield. If yields keep climbing, high-growth stocks could remain under pressure. If yields stabilize, the market could find its footing.
I remain bullish, because earnings this year were more peak than ever before.
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