The comments follow a weaker-than-expected inflation report last week, which had boosted hopes that the Fed could scale back its steep interest rate hikes and helped fuel a strong market rally.
Meanwhile, Fed Vice Chair Lael Brainard said the Fed is likely to cut its interest rate hikes soon, as the central bank tries to determine how high borrowing costs need to be and how long they need to stay there to reduce inflation.
The S&P 500 lost 35.80 points, or 0.9%, to end 3,957.13 points. Meanwhile, the Nasdaq Composite lost 130.96 points, or 1.2%, to 11,192.37. The Dow Jones Industrial Average fell 206.78 points, or 0.6%, to 33,541.08.
In the previous session, the S&P 500 posted its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq posted its best week since March.
Keys this week
Investors’ attention this week will focus on economic data, especially in the retail sector, as well as speeches by various Fed officials to get perspectives on what the future of rate decisions will be like.
The market now expects the Fed to raise the rate again in December by half a point and a terminal rate in the range of 4.75% and 5% for next year.
Source: Ambito
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