Equities fell last week for the 7th time in 2022. The S&P 500 index returned -2.84% as geopolitical risks continued to weigh on equity returns. Last week, inflation fears gripped markets after the CPI was announced 7.9% higher than last February, the highest in over 40 years. Energy prices skyrocketed as the Russian war in Ukraine pushed the odds of a supply shock higher. Oil peaked on Tuesday at $123.70 per barrel for WTI after the U.S. decided to ban imports of Russian oil. Energy was the top performing sector in the S&P 500.
Yields rose across the curve last week with the middle of the curve witnessing the most dramatic jumps. The Russian military continued its march towards Kyiv with neither side offering concessions during peace talks. Fears of exacerbated supply chains, energy supply shocks, and the fallout of sanctions mount as the war persists sending U.S. inflation breakevens higher with yields. Commodity prices also rattled markets last week as oil closed 14% lower from intraweek highs.
