EDITOR'S NOTE

Stocks fell again on Tuesday, with financial names leading the Dow Jones Industrial Average lower, but there were also major moves in other markets as the fallout from Russia's invasion of Ukraine ripples through the global economy. 

Oil futures surged, with the the U.S. benchmark West Texas Intermediate crude hitting its highest level in seven years. Agricultural commodities jumped, with wheat touching its highest price since 2008. 

Meanwhile, gold, safe-haven currencies and government debt also rose, with the 10-year U.S. Treasury yield falling below 1.7% at multiple points on Tuesday. Yields move opposite price. 

The sharp retreat for Treasury yields is particularly notable, as the rising expectations for Federal Reserve rate hikes had pushed yields higher in the opening weeks of 2022. Expectations for rate increases have come down in recent days. However, a rate hike later this month and five by the end of the year are still seen as the most likely outcomes by traders, according to the CME FedWatch Tool. 

Looming over these market moves is inflation, which Fed Chair Jerome Powell is sure to be asked about repeatedly during his Congressional testimony on Wednesday and Thursday. 

"I think the market is starting to get concerned about the inflation shock and the impacts that could have or perhaps is even likely to have at this point," said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. "It looks like that headwind and that volatility is going to stay with us until it's clear that that trajectory is softened, and right now that's just not clear when you have oil prices spiking 10% on the day."

"It's difficult to make movements here without the recognition that an investor could be whipsawed. What seems like the best course of action today might not be the best course of action on Monday because these developments are subject to quick changes," he added.

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