Stock futures were mixed Monday morning to steady after last week's gains, while energy prices resumed a march higher.

Contracts on the S&P 500 edged higher, while those on the Dow and Nasdaq traded slightly lower. Trader's paused after last week's gains, when the S&P 500 posted its first weekly advance in three weeks and its largest since November 2020. The Treasury yield curve steepened, and the benchmark 10-year yield rose to close back in on 2.2%.

Energy and commodity prices spiked amid the latest developments in Russia's war in Ukraine. As of Monday, Ukraine refused to surrender its heavily attacked port city of Mariupol to Russian forces, while the civilian death toll across Ukraine climbed.

U.S. crude oil prices (CL=F) jumped more than 4% to top $109 per barrel, and Brent crude, the international standard, (BZ=F), rose to about $113 per barrel. Aluminum, palladium and wheat prices each also gained Monday morning.

At the start of a relatively quiet week for corporate earnings results and new economic data, traders continued to mull the market implications of the Federal Reserve's latest monetary policy decision against persistently elevated inflation and the ongoing war in Ukraine, which has exacerbated existing price pressures.

The Federal Reserve's move last week to raise interest rates by a quarter-point and signal another six rate hikes later this year was met with an at least momentary rally in U.S. equities, with traders relieved to receive some clarity on the central bank's monetary path forward after weeks of speculation. And the Fed also signaled the likely start of discussions and then implementation of quantitative tightening, or rolling assets off its nearly $9 trillion balance sheet.

"The key message to come from meetings of the Federal Reserve and Bank of England last week, and the European Central Bank the week before, was that the war in Ukraine has not deterred central bankers from their plans to tighten policy," Neil Shearing, group chief economist for Capital Economics, wrote in a note. "In fact, both the Fed and the ECB delivered hawkish surprises."

"The war has added to the squeeze on real incomes in advanced economies and caused a substantial tightening of financial conditions in Europe. But, for now, central banks remain focused on bringing down inflation and containing any second-round effects on wages and prices. This is, on balance, the correct judgement," he added. "While the economic outlook is unusually uncertain, the high starting point for inflation – and the likelihood that it will rise further – justifies a tightening of policy."

© 2022 LeackStat.com