Stocks are dropping because oil is climbing on Iran tensions, bond yields are breaking higher, and rate cuts look less likely — bad for stocks, especially anything bought on margin.

• Trump is losing patience with Iran and oil is jumping, which keeps gas prices high and pressures the market.
• Government bond yields broke through key levels as industrial data came in hot, killing hopes for rate cuts this year.
• Odds of a rate hike this year jumped to nearly a coin toss, with Kevin Warsh now sworn in as Fed chair.
• The rally is dangerously narrow — only a handful of AI stocks holding up the market while bank and financial stocks get crushed.
• Investors are at record-high stock allocations with record-low cash and rising margin debt, leaving the market exposed to sharp swings.

Outlook: Expect more volatility with higher oil and higher rates for longer, but no clear crash signal yet.