Russia's invasion of Ukraine will continue to be a major focus, as wary investors watch fresh inflation data and the rising price of oil in the week ahead, reports CNBC.
Stocks in the past week sold off in volatile trading, as oil rose more than 20pc and a whole host of other commodities rose on supply worries. Investors sought safety in bonds, driving prices higher and the 10-year Treasury yield to 1.72pc Friday. The dollar rallied, pushing the dollar index up 2pc on the week.
"We just don't know what can happen over the weekend. It looks like the Russians are amping themselves up and they're getting more aggressive," said Jim Caron, Morgan Stanley Investment Management head of macro strategies for global fixed income.
"If nothing happens over the weekend, or if there's some peace talks coming, then the 10-year note yield could go up 10 to 15 basis points. It could have that swing," said Caron. Yields move opposite price. (1 basis point equals 0.01pc.)
The Federal Reserve will also be top of mind, as investors focus on its pending interest rate hike on March 16. But Fed officials will not be making public addresses in the quiet period leading up to their meeting.
The economic calendar is relatively light in the coming week, with the exception of Thursday's report of February's consumer price index.
According to Dow Jones, economists expect headline inflation to rise to 7.8pc year-over-year, from 7.5pc in January, the highest since 1982. Headline inflation includes food and energy prices.
"The risk is to the upside. It will be a shocker if we get an 8pc handle," said Marc Chandler, chief market strategist at Bannockburn Global Forex.
Investors will also focus on how the market itself is trading. The S&P 500 fell 1.3pc to 4,328 in the past week, while the Nasdaq lost 2.8pc to 13,313.
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