ASX rebounding after two-month lows on Friday

The ASX is on the rise after a steep decline at the end of last week. In order to understand the price restoration, @Jessica Amir, our Market Strategist, explains the reasons behind the 4.4% drop from record highs.

She goes into more depth in her recent appearance on SBS World News, but let's get into the recap of what's going on with the markets.

The ASX largely mimics the US, so there were four reasons behind the US and global market decline last Friday:

1. US markets ran hard and fast on company earnings growing, and then rebounding from the earnings recessions.

2. Additionally, we started the year under the impression rates would be cut three times this year. However, based on inflation and economic signals, this is looking less likely. With the market now in a re-adjustment period.

3. Middle East tensions are picking up again.

4. Options expiry was also on Friday, which naturally causes volatility once a month.