- Stocks experienced yet another day of wild swings as traders weighed the newest geopolitical developments amid concerns of a Federal Reserve policy blunder.
- The S&P 500 notched its third straight drop, while Treasury yields rose, with shorter maturities leading the increase. Curve flattening resumed as a result of the move, with the difference between two- and 10-year rates contracting. For the first time since 2014, WTI crude reached $95 per barrel.
- Ukraine’s President Zelensky startled markets temporarily with a sarcastic remark about the rest of the world forecasting a date for a Russian assault, according to his office. Instead, Zelinsky believes it should be a day of unity. Meanwhile, Vladimir Putin's senior diplomat urged the Russian president to keep talking to the West, saying that negotiation alternatives were "far from exhausted."
- Since the January Fed meeting, betting on the pace of rate hikes have shifted to six or seven this year, up from the three policymakers predicted in December. Global markets are pricing in an aggressive round of monetary tightening this year, according to JPMorgan Strategists led by Marko Kolanovic, which is unlikely to materialize in full, strengthening the allure of stocks related to the economic cycle.
- Meanwhile, Fed's Bullard, stated on Monday that the central bank needed to move on with plans to raise rates in order to demonstrate its inflation-fighting credibility. He told CNBC, "I do believe we need to front-load more of our planned removal of accommodation than we would have previously."
