Wall Street Plunges Amid Geopolitical Tensions and Hawkish Fed

The stock market is experiencing its third consecutive losing session on Wall Street, with investors facing a mix of geopolitical risks, rising energy prices, and a potentially more hawkish Federal Reserve.

The Dow Jones Industrial Average dropped by 419 points, while the Nasdaq declined by 1%, reflecting growing concerns that the economic outlook may worsen as policymakers prioritize inflation control over growth.

Bitcoin, which has increasingly traded alongside traditional risk assets, is also feeling the pressure. The cryptocurrency market has become highly sensitive to changes in liquidity, Treasury yields, and investor risk appetite.

CNBC's Jim Cramer identifies three major forces keeping markets on edge: Iran's escalating threat surrounding the Strait of Hormuz, a potentially more aggressive Federal Reserve under new Chair Kevin Warsh, and the interaction between these risks.