- Stocks and bonds fell on the prospect of the Federal Reserve quickly reducing its debt holdings as part of a stepped-up campaign of monetary tightening to combat high inflation.
- An Asia-Pacific stock index fell about 1.5%, led by Japan and Hong Kong, which reopened after a holiday. Futures in the US and Europe fell as a result of a drop in Wall Street stocks led by the technology sector.
- Treasuries continued to fall, pushing the 10-year yield to 2.6%, the highest level since 2019. Bonds in Australia and New Zealand fell as well. A gauge of the dollar's strength was close to a three-week high.
- Fed's Brainard stated on Tuesday that containing inflation is "critical," adding that the central bank may begin rapidly reducing its balance sheet as soon as May. Investors are concerned that a more restrictive US central bank will tip the world's largest economy into a downturn, if not a recession.
- The price of oil fell below $102 per barrel. Concerns remain that Russia's growing isolation as a result of the Ukraine conflict will further disrupt commodity flows. New sanctions against Russia are expected, including a ban on US investment in the country and a ban on coal imports from the European Union.
