- Stocks rose as oil fell and a widely watched manufacturing index came in much weaker than expected, easing concerns about more aggressive Fed tightening, which could stifle economic growth.
- Retailers and technology stocks led gains in the S&P 500, while the Nasdaq 100 outperformed after falling more than 20% from a high. West Texas Intermediate crude traded below $100 per barrel, though its decline was slowed after Russian President Putin questioned the success of talks with Ukraine. Energy companies fell, while airlines rose. A day before the Fed's policy decision, treasuries were little changed.
- Prices paid to US producers rose sharply in February, highlighting inflationary pressures that will almost certainly set the stage for the Fed's first rate hike since 2018 on Wednesday. Nonetheless, officials will have to strike a balance between containing rising prices and preventing the economy from collapsing. According to a separate report, manufacturing activity in New York State slowed significantly in early March as orders fell and delivery times increased.
- Ukraine and Russia will resume talks on Wednesday, with a key adviser to Ukrainian President Zelenskiy calling the talks "difficult and viscous," but admitting there is room for compromise. As Russia continues its invasion of Ukraine, President Biden will travel to Brussels next week to meet with NATO allies and participate in a summit of European Union leaders.
- In other news, the yuan recovered losses following news that Saudi Arabia is in active talks with Beijing to price some of its oil sales to the Asian nation in the currency. Base metals fell as coronavirus outbreaks in China threatened to reduce the country's economic output, putting pressure on demand in the world's top raw material consumer.
