After months of strong gains, U.S. equity markets are entering a crucial week with investors closely watching the first Federal Reserve policy meeting under new Chair Kevin Warsh. The meeting comes at a time when markets are grappling with rising inflation concerns, uncertainty over the interest-rate outlook, and rapidly changing geopolitical developments in the Middle East.
The benchmark S&P 500 has retreated more than 2% from its record closing high reached earlier this month, while the Nasdaq Composite has fallen around 4.5% from its recent peak as investors lock in profits from the technology-led rally. Market volatility has also picked up, with the Cboe Volatility Index touching its highest level in two months.
