The S&P 500 fell into a correction in early 2022 as investors positioned for the Federal Reserve to raise the fed funds rate from the 0%-0.25% range.

The Federal Reserve raised rates by 0.25 percentage points on Wednesday, ending the near-zero rate era as it looks to cool historic inflation.

The Fed is expected to raise interest rates for the first time since 2018 on Wednesday, but analysts debate how far hikes will go this year.

The Federal Reserve will have to raise interest rates to 5% to avoid a recession, but that number is "unimaginable" for markets, says Larry Summers.

Rising US rates and the impact of the Russia-Ukraine war on the markets may cause investors to re-evaluate risky assets like bitcoin, Novogratz said.

"It looks like the market is really bent, especially economic expectations, towards recession," Fundstrat's Tom Lee said.

The Fed is widely expected to raise interest rates by a widely expected 25 basis points, its first rate hike since 2018.

Sarah Bloom Raskin told Biden on Tuesday she withdrew her nomination to be the Fed's next vice chair for supervision, according to The New Yorker.

Morgan Stanley's Mike Wilson jo

Russia-Ukraine talks have brightened the prospect of a ceasefire agreement and could pave the way for a deeper pullback in oil, an analyst said.

The Federal Reserve is widely expected to hike interest rates Wednesday even as war rages in Ukraine.

The famous economist doesn't expect the Fed to hike rates as many as seven times this year, saying that would lead to a recession.

Russian and Ukrainian officials on Sunday provided their most upbeat assessment of talks yet that might end the ongoing war.

The Fed's rate-setting board is expected to jumpstart interest rate hikes with a move of 25 basis points this month.

While "cash is king" in an uncertain environment, now's the time to stock pick, Mobius told Bloomberg TV.

The Fed is poised to take the fight to inflation with its first rate hike since 2015. It's all but certain to cool the hiring recovery.

"We don't think there's a high risk of Russian oligarchs using crypto to avoid sanctions," Brian Armstrong said Friday on Twitter.

Oil rocketed higher as Western buyers "self-sanctioned" and shunned Russian crude, while the OPEC+ cartel stuck to its production plans.

Rep. French Hill of Arkansas proposed the Fed nix its employment target and focus solely on inflation. Powell said it would make little difference.

The CME FedWatch tool showed a 0.0% probability of a 50-basis-point rate hike at the FOMC's March 15-16 meeting. A week ago, it stood at 33.7%.

Russia's war in Ukraine and Western sanctions have sent oil soaring, making some investors nervous about "stagflation."

Stocks have rallied despite the outbreak of war in Ukraine, and RBC said the S&P 500 will finish the year much higher.

"The start of policy tightening is usually a confirmation that the cycle has legs, rather than the signal of its end," JPMorgan's Marko Kolanovic said.

Fundstrat's Tom Lee said things look "treacherous" now but the picture should clear and stocks should rally in the second half of the year.

"Markets always overreact and overcorrect to news, or anticipated news, particularly after a big run-up," Cuban told Fox Business.

The S&P was already down 8.8% for the year as of Friday's close. Another 6% drop would push it well into correction territory.

The Greenlight Capital boss predicted the US economy would slow this year, trumpeted copper, and rang the alarm on the passive-investing boom.

There's only a 10% chance that the Fed manages to leave the economy and markets unharmed, Mohamed El-Erian said.

Central banks rapidly hiking rates "is now the most significant threat to an otherwise healthy global backdrop," JPMorgan said.

BMO Capital Markets' Brian Belski isn't buying the story that a recession is coming, and thinks US stocks should still rally this year.

US stocks could suffer drops similar to those brought on by the two Iraq wars or the China trade dispute, RBC said.

Charlie Munger warned inflation is probably the gravest long-term threat to the US after nuclear war, and asserted the Fed oversimulated the economy.

Warren Buffett's business partner said some people welcome crypto's usefulness in committing crimes like extortion, kidnapping, and tax evasion.

Stock market investors were jittery as the West said Russia was continuing to build up troops, and reports emerged of shelling in Ukraine.

"We believe Republicans need to do their jobs and show up to vote for these nominees," Psaki said during a press briefing.

The post-pandemic cycle will reward investors who can pick stocks and sectors, while the broader market will be less generous, says Goldman Sachs.

"It's still all fairy dust and very vulnerable to higher interest rates," JPMorgan strategist David Kelly said of cryptocurrencies.

"Certainly there has been a slowdown," 29-year-old crypto billionaire Sam Bankman-Fried said.

Investors shrugged off an apparent de-escalation of tensions between Russia and Ukraine, as concerns over the inflation outlook weighed on sentiment.

Stock market sentiment is bearish "but not extreme bearish," said BofA about the findings from its February fund managers survey.

The US government bond market has put investors on "recession watch", according to billionaire fund manager Jeffrey Gundlach.

The announcement from the Russian defense ministry came after weeks of heightened tensions between Russia, Ukraine, and the West.

"The stock market is not only in correction, it is already in bear market territory without a recession in sight," JPMorgan's Marko Kolanovic said.

The Fed is poised to start raising interest rates in March. Yet higher rates can't solve supply shortages or keep Americans from buying key goods.

The total cash return yield of the S&P 500, which includes both its dividend yield and stock buyback yield, currently stands at 3%.

"The macro backdrop this year is considerably more challenging than in 2021," Goldman analysts said as they cut their S&P 500 target.

Inflation surged to 7.5% in January, the most since 1982. We've rounded up the views of some of the world's biggest banks and funds.

"This is a prelude to panic, and unfortunately that's where I think we are right now with credit spreads," Gundlach said.

'Quantitative tightening', or QT, is unnerving Wall Street. Even the Fed isn't sure what the effects will be.

BofA doesn't see a "Fed put" triggering unless the S&P 500 falls to 3800, a potential downside of 16% from current levels.

The Boston Fed just tapped economist Susan Collins to serve as the second Black Fed president ever. Its ranks, like its policy playbook, are changing.

The 10-year Treasury yield eased to 2.003% from 2.036% after rising above 2% for the first time since 2019 on Thursday.

El-Erian said the Fed moving quickly on rate decisions will end up in a "lose-lose" situation for the equity market and the economy.

Stock market volatility is "something that you're gonna have to live with for a while," famed value investor Bill Miller said.

US futures were mostly negative on Thursday as markets awaited the latest monthly reading of consumer inflation.

Mark Spitznagel sounded the alarm on the immense amount of liquidity in financial markets, but cautioned against trying to time the next crash.

Traders reckon the Fed will hike five times in 2022. But BlackRock said central banks are likely to end up doing less than markets think.

In addition to financials, energy, and the "quality parts of the technology sector," BlackRock recommended high-margin sectors like data processing.

Allianz's chief economic adviser encouraged investors to capitalize on choppy markets and buy high-quality stocks at discount prices.

Stock market investors were looking towards Thursday's key inflation data, while continuing to digest relatively strong earnings reports.

Stocks have a tendency to sell off in the months immediately after the initial Fed rate hike before eventually moving higher, according to the note.

After a volatile start to the year, US equities have further downside, and investors should maintain a defensive posture, Morgan Stanley said.

The major US stock markets rallied sharply last week but US inflation data due later this week could trigger more volatility.

The Fed has signaled it would only raise rates if the labor market continued to strengthen. Friday's data gave the central bank the green light.

The Bridgewater Associates boss explained why stocks have dropped, urged investors not to hold cash, and laid out several risks of owning crypto.

Strong fourth-quarter earnings from Amazon and Snap helped boost tech stocks, as investors waiting for January non-farm payrolls data.

The nominee, Sarah Bloom Raskin, served on the advisory board of fintech company Reserve Trust.

When stocks are whipsawing, investors need to hold their nerve, sell any bad holdings, and identify long-term winners, Russo said.

The UK's central bank raised its main interest rate to 0.5% as it tries to cool price rises.

Bank of America's Savita Subramanian said the S&P 500 won't deliver good returns in 2022 and pointed to stocks better suited to volatility shocks.

"We see the potential for large market moves, which of course implies significant risks from holding assets," Ray Dalio's Bridgewater hedge fund said.

Big Tech boosted US stock futures as Google's parent company Alphabet reported a massive earnings beat, while the dollar retreated.

January's wild swings in stocks will likely stick around, El-Erian has said, pointing to patchy liquidity and the role of ETFs as overlooked factors.

The Wharton finance professor said he hasn't sold any of his stocks, and will add to his portfolio if the market slides further.

Monday's rally in technology stocks pushed up the net worth of the world's 10 richest people by more than $44 billion, according to Bloomberg data.

January marked one of the worst months for equities since the pandemic began as investors grappled with a more aggressive US central bank.

"While jitters around a Fed hiking cycle are understandable, this has been magnified by technical factors that can change quickly," JPMorgan said.

Federal Reserve policymakers signaled in December they would raise rates three times in 2022. Some economists are now predicting twice as many hikes.

Crypto exchange FTX is now valued at $32 billion after another funding round, and CEO Sam Bankman-Fried doesn't expect a long crypto winter.

Ackman and Wood's purchases reflect that many in the market think the sell-off in big-name technology stocks has gone too far.

The head of Norway's $1.3 trillion oil fund said inflation could trigger a long period of low returns for investors.

Following last week's volatility, sentiment for the tech sector is slowly shifting to positive after bullish results from Microsoft and Apple.

Higher interest rates alone don't have to be a headwind for stocks, according to Kieran Kirwan, director of investment strategy at ProShares.

Real Vision CEO Raoul Pal said crypto's correlation with other assets like equities is constantly shifting, but it could tighten as US rates rise.

Investors were impressed by Apple's strong earnings, after the company brushed off supply-chain problems to boost revenue by 11%.

Berkshire Hathaway stock has climbed 35% since the start of 2020, outpacing a 31% gain for Wood's flagship Ark Innovation ETF.

Bitcoin "will not be immune to macroeconomic forces, including central bank monetary tightening," Goldman Sachs said.

Strong economic data, a mixed bag of corporate earnings, and the Fed embarking on back-to-back hikes to combat inflation are weighing on markets.

The stock market was up sharply early Thursday after the fourth-quarter GDP report showed strong growth.

"We're at a turning point now and things will be much different," Bridgewater Associates' Greg Jensen told Bloomberg News.

"We could certainly see further tightening of financial conditions," the IMF told CNBC. "Risk assets such as equities could sell off further."

"Was it too much? I'm going to leave that to the historians," Powell said. "But it was all founded in a very strong reaction to a unique historical event."

Goldman Sachs president John Waldron criticized the Fed's credibility to rein in inflation followig the FOMC announcement Wednesday, Bloomberg reported.

The Fed was more "hawkish" than many investors expected Wednesday, delivering another blow to bitcoin.

"This has been exactly how the great bubbles have broken," Jeremy Grantham said. "It's almost eerily classic."

"The only thing that matters is the general direction and the themes, in my opinion," Marks said on what investors should take away from Fed policy.

The GMO cofounder and market historian said the S&P 500 could plunge 43%, and accused the Federal Reserve of fueling wealth inequality.

Economist Mohamed El-Erian said the Federal Reserve should have been clearer on inflation after its January meeting.

A hawkish Fed and Chairman Jerome Powell's greater concern over inflation have sent equity investors into a tailspin.

The central bank indicated interest rates will start going up as soon as March. Chair Jerome Powell also did not rule out a rate hike in every meeting.