Stocks declined again on Wednesday amid potential cuts on Fed bond purchases. The latest protocol said members are considering a scale back on the bond purchase program as early as this year, explaining that inflation has already reached their target level and employment is close to reaching their standard of progress.

To be more specific, S&P 500 lost 1% yesterday.

Sean Bandazian from Cornerstone Wealth commented on the situation and said volatility will hit markets no matter how transparent the Fed is with its bond purchases and plans over interest rates.

Also on Wednesday, St. Louis Fed President James Bullard said he would like the bond purchase program to be phased out by the first quarter of 2022. But several other officials, including Robert Kaplan and Esther George, have called on the removal of the program after the meeting this September. Meanwhile, Fed Chairman Jerome Powell and Deputy Chairman Richard Clarida said they would like to see further progress before considering any cut.

"The focus is now shifting to next week's Jackson Hole symposium, in which traders will scrutinize Fed Chairman Powell's keynote speech for any hints at the timing of the announcement on reduction," noted Matt Weller, global head of research at Forex.com and City Index.

With regards to the COVID-19 situation, the Biden administration is reportedly offering booster vaccines to all vaccinated adults in the US starting September 20.

Other important events for this week are:

- policy decision of the Bank of Indonesia and briefing by Governor Perry Warjiyo (Thursday).

- data on US jobless claims (Thursday);

- retail sales report from Canada.