On Monday, the 225 Index opened down 1.58% to 28506.84 points. South Korea's KOSPI Index opened down 0.94% to 3237.06 points. The Australian S&P/ASX 200 index opened down 1.2% to 7283.60 points. The hawkish attitude of the Federal Reserve caused the S&P 500 index to fall last week. The S&P 500 index fell 1.9% throughout the week, the biggest weekly decline since February.
The US stock market fell for the fourth day in a row last Friday. The S&P 500 index had its worst week since February, and the Fed's surprisingly hawkish attitude overturned the inflationary trade that dominated the market this year.
Mainly composed of value stocksDow JonesThe index fell more than the S&P 500 index due to investor withdrawal and economic growthNagawaTransactions related to inflation expectations.applesLarge-scale technology stocks, which are generally viewed as safe havens, also declined on Friday.NASDAQThe 100 Index retreated from its all-time high.
St. Louis Federal Reserve Governor James Bullard said on CNBC that the Federal Reserve has begun discussions on reducing the size of debt purchases.
Giorgio Caputo, senior fund manager at JO Hambro Capital Management, said, “At some point, you'll find that the hawkish Federal Reserve is bad for all sectors, including technology stocks.”
At the close, the S&P 500 index fell 1.3% to 4166.45 points. The Dow Jones Industrial Average fell 1.6% to 33290.08 points; it fell for the fifth day in a row, the longest continuous decline since January 27. The Nasdaq Composite Index fell 0.9% to 14030.38 points. The Nasdaq 100 index fell 0.8% to 14049.58 points. The Russell 2000 Index fell 2.2% to 2237.745 points.
Market analysis: The hawkish attitude of the Federal Reserve caused the S&P 500 index to record its biggest weekly decline since February
The reinflation trade that dominated the market this year and helped drive the US stock market to record highs has been suspended as traders evaluate the Federal Reserve's surprising hawkish stance. On Friday, the S&P 500 index fell for the fourth day in a row, falling 1.9% cumulatively throughout the week, the biggest weekly decline since February 26. In the process, the 50-day moving average fell, a key technical indicator that some traders attached great importance to. And just on Monday, the index just hit a record high.