- Stocks rose after Federal Reserve Chair Jerome Powell struck a more upbeat tone about economic growth prospects, as the central bank raised interest rates for the first time since 2018. Bonds retreated.
- The S&P 500 rebounded after briefly falling as Powell stated that the "economy is strong enough" to handle tighter policy while adding that the likelihood of a recession is "not particularly elevated." Treasury yields increased, led by rates at the front end of the yield curve.
- Swaps tied to Federal Reserve policy announcement dates At one point, it was indicated that at least 75 basis point hikes would take place over the next two meetings, implying that one of the anticipated moves from the central bank could be larger than the standard size of 25 basis points.
- Traders also kept an eye on recent geopolitical developments. Ukraine's president, Volodymyr Zelenskiy, delivered an emotional speech to the United States Congress, while Biden offered hundreds of millions of dollars in new weapons and called Russian President Putin a "war criminal." Following talks between Russia and Ukraine, a Kremlin spokesman stated that a neutral Ukraine with its own army could be a possible compromise in the current crisis, while Kiev stated that any outcome would require firm security guarantees.
