WARNING: THIS IS WHY MARKETS ARE CRASHING TODAY!
In a Nutshell
Markets are selling off over $300B with no major news, likely due to profit-taking ahead of tomorrow's FOMC rate decision where a pause is 99% certain. Oil is crashing on Trump's announcement that a peace deal would let Iran sell oil immediately, potentially driving prices even lower if signed Friday. The speaker warns against buying the oil dip due to high risk and stresses using proper risk management with stop losses and favorable risk-to-reward ratios on all trades.
These notes were generated by AI and may contain inaccuracies.
24 hours from the moment of filming, there will be an FOMC rate decision with the new Fed chair carrying a press conference for the first time. SP SpaceX opened and hit highs of 230 during overnight hours but has since been consolidating with limited progress shown.
Over $300 billion has been wiped from the market early in the session, with the figure likely higher now. The NASDAQ is down 1.44%. There is no major news driving the move. The speaker questions whether this represents profit-taking or derisking ahead of the FOMC decision. There is a 99.1% probability the Federal Reserve will pause rates, making a surprise unlikely.
Trump stated in today's speech that the deal would allow Iran to sell oil and fuel immediately in major concessions. This appears designed to spark a sell-off in oil prices, which began dipping hard following the announcement. Current oil price levels represent one of the lowest points since April 2025.
Oil is approaching previous oversold levels. If the deal is signed on Friday when markets are closed and no intervening events occur, oil prices are likely to drop even further. However, if this represents empty promises about the deal being signed and oil being sold, this would cause oil prices to drop as observed.
Oil is the biggest contributor to the current rate of inflation and why energy represents such a large component of the inflation rate.
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