CNBC personality Art Cashin, also the UBS’s director of floor operations at the New York Stock Exchange, said Thursday that U.S. markets are being driven by the drop in the oil price, despite Federal Reserve Chairperson Janet Yellen’s hinting at a December rate hike.
“When [oil] hit those lows this morning, it crushed the opening rally in stocks and took the Dow down to minus 50. They recovered when oil kind of stabilized,” he said…It’s back to that relationship about the economy in general and oil stocks and energy stocks.” Cashin went on to say that the Federal Reserve is not a driving factor due to the fact that most of the traders at the NYSE (himself included) do not hold that the economic data are supportive for a rate hike.
Janet Yellen and New York Fed President William Dudley, however, both said Wednesday that December was a “live possibility” for raising rates if the data support such a move.
Watch the video of his comments on “Power Lunch” here: