U.S. stock futures dropped on Monday morning, putting the S&P 500 on track to fall back into bear market territory and possibly to a new low for 2022.
A jump in short-term rates drove the negative sentiment as investors still reeling from a hotter-than-expected inflation report on Friday braced for the Federal Reserve to raise rates later in the week.
Futures for the Dow Jones Industrials shed 603 points, or 1.9%, early Monday to 30,758.
Futures for the S&P 500 lost 94.5 points, or 2.4%, to 3,806. The S&P 500 briefly traded in a bear market — down 20% from its high — about three weeks ago but failed to close in that territory. The stock market then
Futures for the NASDAQ Composite index thundered lower 369.75 points, or 3.1%, to 11,498.
Stocks have had a tough year as recession fears rise along with consumer prices. The S&P 500 is down 18.2% year to date through Friday's close. It's also 19.1% below an intraday record set in January.
The Dow has fallen 13.6% in 2022, and the NASDAQ Composite is deep in bear market territory, down 27.5% this year and trading 30% below an all-time high set in November.
Shares that would be hurt the most in a recession led the losses in premarket trading Monday with shares of Marriott, Hilton and Delta Air Lines down at least 3%.
Tech shares were also taking hits with Amazon.com, Nvidia and Netflix also down at least 3%.
In Japan, the Nikkei 225 stumbled 3% Monday. In Hong Kong, the Hang Seng lost 3.4%
Oil prices fell $1.92 to $118.75 U.S. a barrel.
Gold prices withered $17.00 to $1,858.50 U.S. an ounce.