Key takeaways: 

• Before the pandemic, the Federal Reserve’s first addition in interest rates was a healthy broadcast, and markets may have a slight response if the central bank carries out its quarter-point spike Wednesday.
• Investor emphasis stays on Ukraine, which persisted in rambling markets in the previous week, making volatile swings in oil and sending stocks lower.
• The Fed’s rate spike is anticipated, but investors will be observing to see what the central bank has to tell regarding inflation and the economy, as well as its forecasts for future rate climbs.

Investors may take the Federal Reserve’s first post-pandemic interest rate spike in stride, while tension over the Ukraine situation persists in dangling over markets.

The Fed has revealed that it plans to raise its target fed reserves rate by a quarter percentage point from zero, and it is anticipated to declare that move at the end of its two-day meeting Wednesday. The central bank should also disclose new projections for interest rates, inflation, and the economy.

A few economic statements are in the week ahead, including the producer cost index Tuesday, retail deals Wednesday, and existing home sales Friday.

“Profits are over. Monetary policy is going to be necessary here. I don’t see the Fed stunning anyone following week,” said Steve Massocca, managing director at Wedbush Securities. “It’s going to be a quarter-point and then step into the background and observe what’s occurring in Europe.”

For the prior week, stocks dropped with the Nasdaq Composite, the worst performer with a 3.5% drop. Meanwhile, the small-cap Russell 2000, which topped the three primary indexes, lost 1% for the week.

An overflow in oil costs spooked investors, with crude climbing to $130 at the start of the week but trading around below $110 on Friday.