U.S. stocks are sinking Monday morning as investors worry that soaring inflation will prompt the Federal Reserve to become more hawkish at its policy meeting this week. The Dow Jones Industrial Average was down around 2% soon after the opening bell Monday, while the S&P 500 slumped 2.4% and the Nasdaq Composite sank almost 3%, according to FactSet data, at last check. All three major indexes last week had their worst performance since January, after an inflation reading for May came in hotter than expected, heightening fears that the Fed could tip the slowing U.S. economy into recession as it tightens its monetary policy. The S&P 500 would enter a bear market with a close below 3,837.25, marking a 20% drop from its record high in early January.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
