- Stocks ended the day higher as the minutes from the most latest Federal Reserve meeting were perceived as little more dovish than traders expecting aggressive tightening.
- Following the release of the Following the release of the FOMC Meeting Minutes at 2 PM ET, the stock market rallied, with the S&P 500 reversing losses. Companies in the commodity, industrial, and retail sectors beat the technology sector, which benefited from near-zero borrowing rates. Two-Year Treasury yields - which are more sensitive to imminent fed moves - retreated with the dollar.
- At their January meeting, Fed policymakers determined that inflation was running too high, necessitating a rate raise soon and maybe justifying a faster pace of tightening. They stated that "a number of participants remarked that conditions would likely warrant commencing to lower the size of the balance sheet later this year." Markets have already factored in a rate hike in March, with some speculating that the central bank could raise rates by as much as 50 basis points.
- Traders were also keeping a careful eye on recent geopolitical events. In an effort to alleviate the crisis around Ukraine, high-level dialogue is continuing. western officials voiced reservations about Russian announcements that some of its forces are being drawn down. NATO Secretary-General Stoltenberg said there’s no proof of de-escalation and it appears Russia is continuing its military build-up. the Kremlin denied the claim.
- Iran's Senior Nuclear Negotiator Kani: We are closer than ever to an agreement, following weeks of intensive discussions.
