March S&P 500 E-Mini futures (ESH25) are up +0.32%, and March Nasdaq 100 E-Mini futures (NQH25) are up +0.36% this morning as U.S. and Russian representatives met to negotiate an end to the three-year war in Ukraine.
Limiting gains in U.S. stock futures, Treasury yields surged as cash trading resumed following the Presidents’ Day holiday. A rise in bond yields followed hawkish comments from Fed officials. Fed Governor Christopher Waller stated on Tuesday that recent economic data supported maintaining interest rates at current levels until further progress on inflation was observed. Also, Fed Governor Michelle Bowman said on Monday that while monetary policy “is now in a good place,” she wants to “gain greater confidence that progress in lowering inflation will continue as we consider making further adjustments to the target range.” In addition, Philadelphia Fed President Patrick Harker advocated for keeping rates unchanged amid a strong economy but said he anticipates interest rates will gradually decline in the long run.
