The Fed reassures bond markets but oil weighs on stocks and cryptos

On March 30, 2026, financial markets experienced a day of striking contrasts. While Jerome Powell, Fed chairman, eased concerns about interest rates, the rise in oil caused a sharp drop in stocks and cryptos. Nearly 1.3 trillion dollars in market capitalization vanished within hours.

Fed: Jerome Powell’s statements soothe bond markets

Jerome Powell clarified the Fed’s position during a speech at Harvard, stating that the central bank did not foresee an immediate interest rate hike. This announcement, coming days after Trump demanded an urgent rate cut, had a direct effect on bond markets:

• 10-year Treasury yields fell to 4.35%;
• while 2-year yields dropped to 3.83%. 

Moreover, the probability of a rate hike in 2026, estimated at 25% before his statements, collapsed to 5%. Bond investors, reassured by this monetary stability, saw their assets regain attractiveness. Furthermore, the Fed seems determined to maintain accommodative policies despite inflationary pressures from rising oil. Yet this calm contrasts sharply with the storm that rattled other markets.

Oil and geopolitics plunge stocks and cryptos

While the Fed was trying to calm markets, oil prices crossed the $105 per barrel mark, a level not seen since 2022. This increase immediately weighed on stock markets:

• The S&P 500, after a brief rebound, ultimately plunged, wiping out a huge number of points in a few hours;
• Nasdaq futures followed the same path, hitting their lowest level since August 2025.

Unfortunately, cryptos were not spared. Bitcoin, after briefly surpassing $67,000, retreated to $66,500, erasing its initial gains. This correlation between stocks and cryptos is explained by investors fleeing to less risky assets during uncertain times.

Additionally, geopolitical tensions, notably Iranian statements and Trump’s announcements, amplified this volatility, creating an unprecedented climate of instability. In less than 24 hours, over 1.3 trillion dollars in market capitalization were erased, highlighting markets’ vulnerability to external shocks.

This March 30, 2026, revealed the limits of the Fed’s influence against geopolitical and economic shocks. While bond markets find respite, stocks and cryptos bear the full brunt of rising oil. In your opinion, is this volatility just a passing episode or a sign of a deeper trend?