- Stocks rose, while bonds fell, as anticipation that global tensions may be lessening overshadowed data showing that US inflation remains high.
- The equity market halted a three-day drop as Putin said he hopes for a diplomatic solution to tensions with the US and its allies and announced a partial pullback of thousands of troops massed near the Ukrainian border.
- Biden said a Russian strike on Ukraine is still a possibility, but that diplomacy should continue. The tech-heavy NASDAQ 100 outperformed key benchmarks, as energy companies fell victim to the oil collapse. Treasury 10-year rates surpassed 2%. Gold, the Japanese yen, and the Swiss franc also plummeted as safe-haven investments.
- The Ukraine issue has thrown markets for a loop, adding to concerns about inflationary pressures and the Federal Reserve's removal of stimulus. As companies deal with supply-chain and labour restrictions, the Producer Price Index in the United States increased more than expected in January.
