STI Slumps on US Market Woes

The Straits Times Index (STI) declined by over 1 per cent on Thursday morning as US markets tumbled due to inflation fears and a hawkish Federal Reserve chair.

The benchmark index fell to an intra-day low of 5,638.94 before rebounding to 5,669.6 as at 9:37 am, down 43.59 points or 0.8 per cent.

Local banks were a sea of red in the morning, with DBS down 0.8 per cent to S$74.42 and UOB 0.8 per cent lower at S$43.52.

James Ooi, market strategist at Tiger Brokers, said the retreat from providing forward guidance gives the Fed greater policy flexibility but also leaves investors with less clarity on the policy path ahead.