The global equity market experienced losses for 6 consecutive sessions when the Federal Reserve (Fed) officials still see the importance of implementing interest rate hikes in curbing inflation despite also being cautious with overly aggressive measures.
After the Dow Jones Industrial entered a bearish trend yesterday, the benchmark S&P 500 suffered its longest loss since 2020 with a 24% drop from its record high on January 3.
Looking at the Wall Street chart, the Dow Jones Industrial shed early gains to close 0.43% lower at 29,134.99 while the S&P 500 lost 0.21% at 3,647.29 and the Nasdaq Composite fell 0.3% at 10,829.5.
Commenting on market conditions Robert Pavlik, portfolio manager of Dakota Wealth said it was not a surprise as investors continue to digest the impact of the Fed's moves on economic growth.
Please note that the Presidents of the St Louis Fed and the Chicago Fed gave the impression that the central bank will continue to raise rates for the rest of the year and expect it to reach 4.57% to 5% in the first quarter of 2023.
Moving to the Asian region, Japan's Nikkei 225 fell 0.68% while the Topix shed 0.67% while Australia's S&P/ASX 200 started on a positive note.
South Korea's Kospi index was off 0.43% while the Kosdaq gained 27% and MSCI's broad gauge of Asia Pacific shares outside Japan plunged 0.18%.
In the meantime, the 10-year Treasury yield of the United States (US) closed at a high of 4%, which is a level that has not been reached since 2010.
