Subadra Rajappa, Head of US Interest Rate Strategy at Société Générale, stated that equity markets could decline if the Federal Reserve adopts a monetary policy stance that is less dovish than anticipated in the coming months.

"If the market perceives that the Fed is unwilling to cut rates as aggressively as currently priced in, it could trigger a wave of position unwinding," Rajappa noted.

The Federal Reserve will provide further insight into its interest rate policy outlook this week through the release of its closely watched "dot plot."