- Stocks fell as oil prices rose above $100 per barrel, reigniting inflation fears, while big banks fell ahead of the start of the financial earnings season on Wednesday.
- The S&P 500 erased gains that had previously been driven by speculation that price pressures were nearing a peak. JPMorgan will be the first of the top six banks to report earnings, with Wall Street focusing on how the volatility caused by the Ukraine war affected investment banking and trading operations.
- Treasury 10-year yields fell after reaching their highest level since December 2018.
- Oil has surpassed $100 per barrel.
- The rise in crude oil prices, along with other commodities, has fueled inflation fears, putting pressure on the Federal Reserve to raise interest rates more aggressively. Gasoline prices accounted for half of the monthly increase in the US consumer price index in March. Nonetheless, core inflation increased less than expected, owing in large part to the largest drop in used-car prices since 1969 and a slowing in price growth in other merchandise categories.
- On the geopolitical front, Russian President Putin stated that peace talks with Ukraine have stalled and vowed to continue his military operation in the country, despite calling the conflict a "tragedy." Meanwhile, Ukrainian President Zelenskiy has called for additional European Union sanctions against Russia, including oil and all banks.
