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Sanctions underwhelm, commodities cool, and inflation risks remain high. Weak sauce Initial sanctions against Russia announced by the U.S. a [View in browser]( [Bloomberg]( Sanctions underwhelm, commodities cool, and inflation risks remain high.  Weak sauce [Initial sanctions]( against Russia announced by the U.S. and its allies yesterday are seen as [less severe than expected](. While they have been described as a “[first tranche](” of measures, they fall well short of what some analysts were expecting. In Europe, the most significant move came with the halting of certification of the [Nord Stream 2 gas pipeline](. President Vladimir Putin said he remained open to [diplomatic solutions]( as long as Russian interests are guaranteed. Ukraine urged its citizens to leave Russia and the country moved toward declaring a nationwide state of emergency. Today is Defender of the Fatherland Day in Russia, a national holiday. Calmer The [surge in commodities]( from crude to metals to wheat is [pausing today]( as investors stay on alert for fresh Ukraine developments. Gold held below $1,900 an ounce, nickel slipped after hitting $25,000 a ton yesterday and wheat futures retreated. Aluminum remained close to a record high. Things are slightly more complex in the oil market, where traders also have to contend with the possibility of a large supply boost which would accompany [a successful conclusion]( of Iran nuclear talks. A barrel of Brent was trading [slightly lower at $96.35]( while West Texas Intermediate was at $91.32. Outlook Outside of the crisis in Eastern Europe, inflation remains the dominant theme for markets, with growing signs that companies are preparing for [cost increases to last much longer]( than many economists are predicting. There seems to be something of a [vicious circle developing in the commodities space](, where investors are increasing their exposure as an inflation hedge, thereby possibly driving up prices further. While traders are starting to again increase bets that the Federal Reserve will announce a 50 basis point hike in March, they still price the chances much lower than they had earlier this month. Markets rise There is little sign of panic in global equity prices this morning as investors see initial sanctions as limited. Overnight the MSCI Asia Pacific Excluding Japan Index gained 0.4% with Tokyo markets closed for a holiday. In Europe the Stoxx 600 Index had risen 0.7% by 5:50 a.m. Eastern Time, with energy the only industry sector in the red. S&P 500 futures [pointed to a higher open](, the 10-year Treasury yield was at 1.967% and Bitcoin was close to $39,000. Coming up... There is no American economic data of note this morning. The U.S. sells $53 billion of 5-year notes and $22 billion 2-year FRNs at 1:00 p.m. With all eyes on Ukraine, the State Department briefing at 2:00 p.m. and White House press briefing at 2:30 p.m. will be closely watched. San Francisco Fed President Mary Daly speaks later. Lowe’s Cos., TJX Cos., EBay Inc. and Hertz Global Holdings Inc. are among the companies reporting results. What we've been reading Here's what caught our eye over the last 24 hours. - S&P 500 charts are so bad even bulls are [looking to adjust bets](. - Goldman Sachs [wants its bonuses back]( as punishment for jumping ship. - Omicron [ripping through cargo ships]( may exacerbate supply-chain woes. - Barclays suspends vesting of Staley’s shares on [Epstein probe](. - A pandemic baby bump shines a spotlight on the [Nordic welfare model](. - First ever recording of a dying brain may [shed light on our final moments](. - Webb telescope might be able to [detect other civilizations]( by their air pollution. And finally, here’s what Ven’s interested in this morning Cathie Wood needs sentiment to turn around real quick -- and by a whole lot. Her flagship Ark Innovation ETF has lost about a third of its market value so far this year, with the darlings of the portfolio -- including Tesla and Roku -- turning into dogs. And those who bought into Ark at the peak have seen the value of their investment slump by a whopping 60%. Wood, who famously remarked late last year that her fund could deliver a 40% compounded annual rate of return during the next five years -- comments she later tempered to clarify that the wording “applies to Ark’s disruptive innovation strategies broadly” and not any particular product or fund -- is now turning into a value investor. Her technology bets, she [contends](, “are way undervalued relative to their potential.” Investment is best made when it is business-like, Benjamin Graham said many moons ago. Last I checked, it’s still the way to do it. Boring, maybe, but also far safer than investing in companies that are trading at triple-digit price-to-earnings ratios, with an anemic return on equity to boot. Innovation and growth have their place, but there’s no point supplanting common sense with oodles of optimism. Maybe Wood can still come out ahead, but the ominous combination of spiraling inflation in the U.S. and tensions in Ukraine look too menacing for her just now. Follow Bloomberg's Ven Ram on Twitter [@ven_word]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. 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