Technology and communications services drove the S&P 500 down for the first time, so the index recorded a 0.6% decline yesterday.

Shares of Apple and Microsoft dragged the Nasdaq 100 down as well, but by 1.3%.

As for Coinbase Global, the value dropped by 7.8%, thereby hitting a rate of $ 238.25. This is the lowest record the index reached, not to mention it is well below the reference price it stated in its direct listing in April.

With this, UBS Global CIO Mark Haefele said investors should prepare for more bouts of volatility, as inflation data and other risks may try to shake the markets. But high inflation alone will not be enough to end the stock rally because it will remain driven by cyclical parts of the market.

At the same time, Fed Vice Chairman Richard Clarida said the weak figures on the US labor market indicates that the economy is not yet ready for cutbacks on bond purchases. Obviously, the sector still needs significant progress, hence, the central bank will not make abrupt decisions, especially on the topic of support programs.

Therefore, this week, investors should pay attention to whatever statements the Federal Reserve will announce, particularly on increasing price pressures and bond purchases.

TrueMark Investments CEO Mike Loukas predicts that market volatility will continue, since investors will seek direction from the minutes of the Federal Reserve.

The most important events this week are:

• Minutes of the latest policy meeting of the Reserve Bank of Australia (Tuesday, May 18);
• Minutes of the latest policy meeting of the Federal Reserve (Wednesday, May 19).