This Hawkish Fed Was Good for Stocks: 3-Minutes MLIV

Mark Cudmore breaks down the post-Fed market implications and Iran oil developments. He sees further short-term downside for crude oil as Trump prioritizes a deal to lower prices before midterms. A surprisingly hawkish Fed from Kevin Warsh is viewed as ultimately positive for equities by restoring credibility and signaling a strong economy. Asian markets and the tech trade rallied on these narratives. - Oil prices dropped after the Iran MoU was signed. - Mark Cudmore sees more short-term downside for crude driven by Trump's political incentives. - Kevin Warsh delivered a hawkish Fed message focused on inflation. - Cudmore argues this hawkishness is good for stocks because it restores Fed credibility. - Higher yields due to economic strength are less threatening to equities than stagflation. - Asian equities and the tech trade received an additional boost from lower oil prices. - European markets appear more hesitant in contrast.