-After inflation rose for the sixth month in a row and the Russian attack on Ukraine showed no signs of abating, US markets plummeted and bond yields rose. Oil dropped, while the value of the dollar has increased.
-The S&P 500 ended down but well off session lows, with tech stocks leading the retreat. After data showed inflation running at the fastest pace in 40 years, Treasury yields fell across the board, pushing the 10-year rate to levels not seen since February 25 and the 30-year rate to its highest since May 2021. In New York, oil fell below $107 a barrel amid fears that rising prices will expedite the onset of demand destruction.
- Since Russia's invasion of Ukraine two weeks ago, markets have been on a roller coaster, with the greatest swings in gains and losses in US stocks since 2020 this week. Investors are grappling with uncertainty surrounding Russia's invasion of Ukraine as well as supply disruptions, while inflation is dropping, putting pressure on policymakers to raise rates and threatening to stifle economic development.
- At the first high-level meetings between their foreign ministers since the Russian invasion began, Ukraine and Russia failed to make progress in ending the war and bridging their massive differences. On Wednesday, a top foreign policy aide to Ukraine's president said the government was willing to address Russia's demand for neutrality as long as security guarantees were provided.
- While the increase in consumer prices in the US was in line with projections, it reinforced expectations that the Federal Reserve will begin hiking interest rates next week to manage inflation, which some analysts believe will rise above 8%. Because of the Ukraine conflict and Biden's ban on Russian energy imports tightened oil supplies.
