Markets look to 'dovish' Federal Reserve for direction

MAJOR US stock indexes fell slightly last week, snapping a five-week winning streak as official statements and economic data hinted that the Federal Reserve could raise rates again as soon as next month.

The rally may resume this week, as long as jobs data is not too hot.

The five-week rally was predicated largely on hopes - and the realisation of those hopes - that the Fed would respond to the commodities and emerging-markets crash by turning "dovish", or anti-hike, in its March statement. Strong data like Thursday's gross domestic product (GDP) growth revision, which suggested consumers are finally spending their petrol savings, has caused hike fears to return.