S&P500 sold-off last week primarily in reaction to the Fed’s Chair Powell hawkish IMF speech. The market now expects a more hawkish monetary policy tightening, which increases the probability of the Fed-induced recession. All S&P 500 sectors sold off.

After an almost 5% 2-day drop, there is a possibility of short covering if market sees “the peak hawkishness”. Otherwise, S&P 500 is approaching the previous lows, with the new lows in sight. Here is the full report.