Posted 10/22/2023, 5:00:00 PM
Markets Drop as Middle East Tensions, Hawkish Fed Weigh On Sentiment
- Global equity markets fell sharply last week on escalating Middle East tensions and surging US yields after hawkish Fed comments. S&P 500 fell 2.4%.
- US 10-year yield hit highest since 2007 as Powell acknowledged tightening financial conditions but didn't rule out further hikes.
- ECB rate decision on Thursday in focus; expected to keep rates unchanged but stress they'll stay high.
- US Q3 GDP, durable goods orders, core PCE price data due. Alphabet, Microsoft, Amazon earnings eyed.
- USD supported by Fed policy divergence; oil prices volatile on Middle East tensions; gold at 5-month high.