The U.S. stock market recorded its biggest decline in about four months, and investors' prospects for the Fed's underweight triggered a plunge in global stock markets. The S&P 500 index fell 2.9% in intraday trading, the largest one-day decline since October 2020. The closing decline narrowed to 1.7%. After the index rebounded from the closely watched moving average, traders bought on dips again .

The Federal Reserve will hold a monetary policy meeting this week, and the market expects that policymakers will begin to pave the way for reducing the scale of debt purchases. Anne Wickland, portfolio manager of Easterly Investment Partners LLC, said, "If the time for the market correction is ripe, then it may be now. Most of the selling occurred at the end of the third quarter, and investors will begin to adjust their expectations from the fourth quarter." Marko Kolanovic and other strategists at JPMorgan Chase said that as the momentum of the global economic recovery accelerates, the decline of the S&P 500 is an opportunity to buy bottoms.

The pan-European STOXX 600 index fell 1.7%, and mining stocks plummeted 3.6%, affected by the drop in commodity prices. All major European sectors fell, with banking stocks tumbled 4.3%, and utility stocks, food and beverage stocks and real estate stocks saw the smallest declines.

The German DAX index fell 2.3%, the UK FTSE 100 index fell 0.86%, and the French CAC-40 index fell 1.74%.

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