- Stocks fell, while traders sought safety in bonds and other haven assets as concerns about geopolitical risks compounded concerns about the outlook for central bank policy.
- On Thursday, nearly 85% of the companies in the S&P 500 fell, while the technology-heavy Nasdaq 100 fell 3%. Treasury 10-year yields fell below 2%, while gold, the Japanese yen, and the Swiss franc rose. Despite the threat of economic sanctions that could disrupt global supplies, oil prices fell. bitcoin sank.
- The United States has increased its warnings about a possible Russian attack on Ukraine, with President Joe Biden claiming a false-flag event is taking place and a top diplomat describing Moscow as moving toward an imminent invasion. Russian officials stated that no invasion of Ukraine was underway or planned.
- Meanwhile, Federal Reserve Bank of St. Louis President Bullard stated that lowering inflation may necessitate the central bank exceeding a neutral target interest rate, which he sees as around 2%. In response to the fastest inflation in 40 years, he reiterated that the Fed should hike by 100 basis points by July 1 and begin a balance-sheet run-off in the second quarter.
- According to strategists at Goldman Sachs Group, American companies are dealing with a historically tight labour market, low unemployment, and rising wage inflation, which are putting pressure on profit margins. According to data compiled by Bloomberg Intelligence, analysts have reduced their margin expectations for 75% of industries and roughly half of the S&P 500 companies for the first and second quarters.
