US stocks ended September with their biggest monthly decline since December 2022, with the S&P 500 and Dow dropping by 4.8% and 3.4%, respectively, while the technology-heavy Nasdaq lost 5.8%. The expectation of "higher for longer" interest rates put pressure on markets. With hawkish commentary from several Fed policymakers, investors are worried that a pivot toward lower rates will not happen any time soon. US long-term interest rates surged due to the uncertainty in the macro landscape. 

We continue to hold the view that the resilient economy and persistent inflation call for sustained restrictive monetary policy. Given this backdrop, we have maintained a cautious approach, reducing our US equity exposure from 52% to 40% during the month.

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