- While the S&P 500 recovered from its lowest point of the day, it still sank to its lowest level since October. After a roughly 3% drop earlier in the day, dip buyers emerged at one point to snap up bargains, reversing earlier losses. In contrast to Monday, the index did not make a dramatic recovery.
- According to strategists at Goldman Sachs, the likelihood of a "growth shock" to equities is rising. They warned that strong monetary tightening to manage inflation might eventually have knock-on repercussions on economic activity, harming stocks, ahead of the Fed's decision on Wednesday, which is expected to indicate toward a rate hike in March.
- The IMF lowered its 2022 global growth forecast, citing worse prospects for the United States and China, as well as persistent inflation.
- On the geopolitical front, deputy Treasury Secretary Adeyemo said the US and its European partners have "at the ready" economic sanctions if Russian forces invade Ukraine. Top Biden Administration officials said reinforcements for NATO forces in Eastern Europe and potential sanctions on Russia are ready to go. A Kremlin spokesman warned that a White House move to put as many as 8,500 troops on alert "exacerbates tensions".
