- As traders evaluated hawkish Federal Reserve commentary and a new round of potential penalties on Russia, equities and bonds in the US plummeted, ratcheting up global tensions over Moscow's invasion of Ukraine.
- The S&P 500 declined, led by losses in technology and consumer discretionary, while Treasuries also retreated amid deepening concern about inflation and the policy response. The Federal Reserve will continue to tighten policy gradually and lower its balance sheet as quickly as possible, according to Fed's Brainard.
- The 10-Year Treasury yield hit a three-year high for the third day in a row, with the focus staying on inverted yield curves, which might herald an economic slump if the Fed tightens aggressively to curb price increases.
- As raw-material costs rise, market movements are still dictated by the consequences of tightening monetary policy and the crisis in Ukraine.
- As raw-material costs rise, market movements are still dictated by the consequences of tightening monetary policy and the crisis in Ukraine.
- Additional sanctions on Russia are anticipated to be announced by the US, the EU and G7, including a ban on all new investments in the country. In addition, the EU plans to propose an obligatory phaseout of Russian coal imports in response to claims that Russian soldiers committed apparent war crimes in Ukraine.
- Coal futures in Europe hit a three-week high. Crude oil plummeted as the European Union stated it would refrain from sanctioning Russia's oil and gas for the time being.
- Up next, traders will be watching for minutes from the Federal Reserve's latest meeting on Wednesday, which will provide insight into how quickly the bank plans to raise rates and shrink its bond holdings.
