The S&P 500 was trading 3.7% lower at midday. Last week, the index logged its worst week since March 2020.
Each day last week, stocks fared worse in the final hour of trading, which tends to be a bad sign for the next day, said TD Ameritrade chief market strategist JJ Kinahan. That negative sentiment continued Monday.
A lot to digest
Investors also have a lot on their plate this week.
Expectations are only part of the game. The Fed could also conclude that inflation has run too hot at the end of 2021 and crank up rates more — or sooner.
Treasury yields, which track interest rate expectations, were off last week’s highs Monday. The 10-year bond yielded 1.72% at midday after climbing past 1.8% for the first time since before the pandemic last week.
Commodities markets are feeling the pressure of the rising tensions and analysts believe oil prices could soar if the situation escalated. On Monday, however, US oil prices fell 3.3%, or nearly $2.90 per barrel, to $82.31 at midday.
— CNN Business’ Julia Horowitz contributed to this report.