Equities pulled back on Wednesday as geopolitical tension and rising oil prices sapped sentiment. The price of WTI rose more than 5.0% intraday to well over $115 and is well on its way to retesting the recent highs near $130. On the geopolitical front, NATO is stepping up its message to Putin including a show of troop strength that could trigger an armed response. Based on the geopolitical outlook and skew in the energy market, we are expecting to see the price of WTI move well above $130 before it peaks out for good.

In business news, headwinds are emerging for businesses that may cut into the outlook for 2022. With supply chain easing and economic acceleration expected in the 2nd half, this is not good news at all. The consensus estimate for S&P 500 earnings growth was already on the verge of decline, if these headwinds grow they could completely alter the outlook for the year and bring the S&P 500 crashing down.