James Carville: “as the bond market. You can intimidate everybody.” Despite Bessent’s efforts, bond ylds increased last wk 1-7 bps while S&P/Nas/SOX (AI proxy) -1.4%/-2.1%/-5.4%. Next wk has Iran sanctions (Mon), $NVDA earnings (Wed) & Warsh at Jackson Hole (Fri.) On Monday, the US is likely to put financial sanctions on Iran and any country supporting them in lieu of further military action going forward. The polling numbers in the US for support of the war are poor. But given China, who buys the most Iranian oil, will most likely be exempt from sanctions, I doubt this will have much impact other than what Iran does to retaliate. I believe Iran will try to keep the Straits hostage through at least the mid-terms. The US hostages in Iran were held for 444 days despite financial sanctions.
View on X ↗