🔻🔻Tech stock tumble as OIL soars

It looks like inflationary pressure is only about to go up. As power prices increase around the globe the crisis spreads to the oil market. Oil can also be a source of energy but obviously additional demand from that segment with no adjustment from the supply exerts a strong upwards pressure on prices. For this very reason markets hoped the OPEC+ will offer a helping hand but that doesn’t seem to be the case.

The outcome for the global economy can be scary indeed. As power tightness already causes stoppages, higher energy prices will only drive up costs, compounding already difficult situation of the supply side of the economy while at the same time denting demand down the road. This means an increased risk of a stagflation scenario – certainly not something investors hoped for.

An immediate reaction is not just higher OIL prices but also a major slide in equities, especially tech that is sensitive to bond yields. US100 crashes through a lower limit of an upwards channel and faces the next support at the round 14000 points area.