Why Is Almost Everything Crashing?

Around $2.8 trillion has reportedly been wiped from the combined market value of stocks, gold, silver, and crypto over the past 24 hours Here are the key factors driving the sell-off:

1. Alphabet’s AI spending concerns
Alphabet’s latest earnings report disappointed investors, while its projected 2026 AI spending of $195–205 billion raised concerns that AI investments may be growing faster than near-term profits.

2. Oil prices surge
Oil climbed toward $100, reportedly driven by escalating geopolitical tensions and attacks involving oil tankers in the Red Sea.

3. Treasury yields rise
The 10-year U.S. Treasury yield reached 4.714%, its highest level since January 2025, putting additional pressure on risk assets.

4. Rate-hike fears return
Markets are increasingly pricing in the possibility of a Fed rate hike in September, with expectations reportedly rising to 82%, up sharply from 20% two weeks ago.

5. Rising geopolitical tensions
Reports that Trump may authorize a larger military operation against Iran have added another layer of uncertainty to already fragile markets.

The bigger picture:
When inflation fears, higher yields, tighter monetary policy, geopolitical risk and uncertainty around AI spending collide, investors tend to reduce exposure to risk.

That’s why we're seeing broad-based selling across equities, precious metals, and crypto markets hate uncertainty and right now, there is plenty of it.

#SummerCreationCamp