Since the start of the pandemic, the S&P 500 Index has suffered the most significant monthly losses. However, Nasdaq still holds the title for the worst monthly losses since the 2008 global financial crisis as well as concerns over the US Federal Reserve tightening monetary policy.

As earnings results from corporations started to trickle in during the final week of April, Wall Street remained on edge and faced disappointing figures. Amazon disclosed lower-than-expected earnings and sales predictions for the first quarter of 2022. And though Apple’s sales exceeded estimates, the company’s stock fell by 2.5% due to supply chain fears. Q2 earnings per share stood at $1.52.Market trends explain why the Fed got inflation so wrong in the last year. Some analysts criticise the Fed for wishful thinking slow and having to catch up with the reality now.in case the rate hikes fall short of the expectations, or too cold if the monetary tightening turns out too aggressive. On an aggressive Fed policy outlook, hinting at a more than 50 bps hike in June, XAU/USD,could accelerate the downside momentum to hit the 200-DMA EXT at $1,836/1818 Morgan Stanley suggests it will likely be a “battle between positives and negatives.” On the other hand, Goldman Sachs strikes a more cautious tone on how S&P could fare in the coming months.

So, it is more or less a wait-and-see kind of period to see what will actually happen.XAUUSD is trading in the red while within Tuesday’s wide trading range, as bears move away on the sidelines ahead of the all-important Fed showdown.