On Wall Street, the Dow Jones Industrial Average dropped 201.92 points on Friday, or 0.77 percent, to 25,989.3, the S&P 500 lost 25.82 points, or 0.92 percent, to 2,781.01 and the Nasdaq Composite dropped 123.98 points, or 1.65 percent, to 7,406.90.
The Fed said early in the week that it would hold rates steady but stayed on track to tighten policy next month.
“Markets are pricing in a 25bp hike in December, with data flow suggesting pipeline inflation pressures are building,” analysts at ANZ said in a morning note, according to a Reuters report.
Middle East markets
Saudi Arabia’s index dropped 0.4 percent on Sunday dragged lower by weak oil prices.
Oil refiner Petro Rabigh dropped 1.7 percent and National Commercial Bank fell 0.6 percent.
Saudi insurance firm Mediterranean and Gulf Cooperative Insurance and Reinsurance (MedGulf) was also down 1.1 percent despite reporting a 70 percent rise in third-quarter net profit.
Dubai’s index edged 0.3 percent lower as Emaar Properties dropped 0.8 percent and DAMAC Properties fell 1.4 percent.
Abu Dhabi’s index fell 0.5 percent, with Abu Dhabi National Energy Co (TAQA) dropping 3.6 percent.
Egypt’s index dropped 1.2 percent as Commercial International Bank Egypt fell 2.3 percent and EFG Hermes declined by 1.5 percent.
Qatar’s index edged up 0.2 percent, Bahrain’s index was mainly flat, while Oman’s index gained 0.3 percent and Kuwait’s index was mainly flat.
Oil prices surged in early trading on Monday on news that Saudi Arabia announced a cut in supply for December.
International benchmark Brent crude oil futures were at $71.11 per barrel at 0051 GMT, up 93 cents, or 1.3 percent from their last close.
U.S. West Texas Intermediate (WTI) crude oil futures were at $60.73 per barrel, up 54 cents, or 0.9 percent from their last settlement.
The dollar was trading near 16-month highs on Monday.
The dollar index, which measures the greenback against a basket of six major currencies, gained 0.12 percent on Monday.
Gold prices steadied in early day trading on Monday.
Spot gold was little changed at $1,209.57 per ounce at 0121 GMT. On Friday, prices fell to their lowest since October 11 at $1,206.13 per ounce.
U.S. gold futures were up 0.3 percent at $1,211.7 per ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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