Shares sunk back to negative territory on Thursday, as hawkish tones from the United States Federal Open Market Committee (FOMC) prompted caution across global markets.

The main index shed 1.14% or 98.08 points to 8,515.57 yesterday, quickly reverting its stance after managing to post gains in the previous session. The broader all-shares index likewise dropped 0.68% or 34.98 points to 5,087.19.

“Rising bond yields continued to assert pressure on stocks in Wall Street, and the last FOMC minutes from then Chairman Janet Yellen giving strong sell signals to the Philippine market today. With the FOMC minutes indicating a slightly hawkish tone to inflation and growth in the US, markets globally took a precautionary stance,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.

Minutes of the FOMC’s meeting last Jan. 30-31 stated that rate hikes will be implemented, alongside the US’ increased economic growth that is also triggering faster inflation.

US markets met this news on a negative note, with the Dow Jones Industrial Average losing 0.67% or 166.97 points to 24,797.78. The S&P 500 index gave up 0.55% or 14.93 points to 2,701.33, while the Nasdaq Composite index was down 0.22% or 16.08 points to 7,218.23.

Most Asian indices followed suit, trekking lower as investors turned cautious against the impending rate hikes.

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