Global stock markets suffered the worst week in more than a year as the United States’ central bank moved to tighten monetary policies.

The FTSE All-World index of developed and emerging market shares lost 4,2% this week, posting the steepest weekly decline since October 2020, Financial Times reported.

Among the U.S. major indexes, S&P 500 tumbled 5.7% over the past week, with more than two-thirds of the stocks within the index now trading in a technical correction, meaning they are down at least 10% from their record high, including nearly 150 stocks having declined 20% or more.

Nasdaq Composite, a tech-heavy index, plummeted 7.6%, recording its biggest weekly slide since the COVID-19 pandemic hit the U.S. markets in March 2020.

The bigger fall in Nasdaq was partly attributed to the sharp decline of Netflix after the streaming group warned subscriber growth would slow substantially.

Netflix tumbled 22% on Friday, sweeping away about $49 billion of its valuation.

“At a time when investors were broadly hopeful that we’d found a bottom and would get into an earnings season that would help ease investor concerns and give a lift to the market, Netflix’s report did the opposite, sending jitters through the market that things won’t pick up from a demand perspective,” said Tim Skiendzielewski, investment director at asset manager Abrdn.

A weak start to earnings season was knocking confidence of investors who have already raced out of the market as the Federal Reserve moves to tighten financial conditions.

The Fed is forecasted to raise interest rates four times in 2022 and withdraw other stimulus measures that were launched to support the markets due to the COVID-19 pandemic.

Jim Tierney, a fund manager at AllianceBernstein, said that the stock markets have turned very bearish over the Fed’s tightening prospect.

“The Fed has never in the last 20 years—in most of our investing careers—been hyper hawkish,” the manager said, but added that the market now is pricing in what they are going to have to be.

In Europe, the Stoxx 600 index fell 1.4% for the week, marking its third consecutive weekly loss.

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