The market rebounded from Tuesday’s steep slide on Wednesday, with the Dow Jones Industrial Average gaining 0.7%, while the S&P 500 and Nasdaq Composite added around 0.4% and 0.2%, respectively. Furthermore, stock futures climbed as investors monitored headlines that indicated Ukraine and Russia could be headed for fresh negotiations.
In addition, Wall Street isn’t convinced that the Fed will have the same resolve to move ahead with the interest rate hikes as anticipated, following Russia’s invasion of Ukraine. Bets on the probability that the Fed will announce a 0.5 percentage point interest rate hike when it meets later this month have fallen to less than 8% from 34% a week ago. However, the near-term scenario remains highly uncertain.
