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Stocks fell Monday on fears that the Federal Reserve may continue tightening until it tips the economy into a recession.
The Dow Jones Industrials thundered 482.78 points, or 1.4%, to 33,947.10.
The S&P 500 subtracted 72.86 points, or 1.8%, to 3,998.84.
The NASDAQ dropped 221.56 points, or 1.9%, to 11,239.94.
Tesla shares shed 6.4% on reports of an output cut at its Shanghai factory, while tech stocks like Amazon and Netflix slid more than 2% each on growth concerns. Salesforce tumbled 7.3% as it announced the departure of Slack’s CEO.
Macao-linked casino stocks gained on hopes of easing COVID-19 restrictions, while VF Corp. shares slid 11.2% after cutting its outlook.
Investors are looking ahead to next week’s Federal Reserve interest rate decision at the conclusion of the central bank’s December policy meeting.
Following a speech last week by Fed Chairman Jerome Powell, markets largely expect the central bank will approve a 0.5-percentage-point interest rate increase. That would mark a step down from a series of four straight 0.75-percentage-point hikes.
A hotter-than-expected reading of November ISM Services further fueled concerns that the Fed will continue hiking. The index posted a 56.5% reading, topping the Dow Jones estimate of 53.7% and increasing from October.
Prices for the 10-year Treasury lost some ground, raising yields to 3.59% from Friday’s 3.56%. Treasury prices and yields move in opposite directions.
Oil prices sank $2.65 to $77.33 U.S. a barrel.
Gold prices plummeted $29.40 to $1,780.20 U.S. an ounce.
