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U.S. stocks fall as investors brace for Fed action, possible recession

U.S. stocks tumbled Monday as investors reeled from a lousy inflation report and worries that Federal Reserve actions will lead to a recession, creating new headaches for President Biden as the country sinks deeper into economic doldrums.

The Dow Jones slumped 876 points, or 2.79%, and S&P 500 fell into bear market territory, meaning it has dropped 20% from its recent high. Bear markets are viewed as a telltale sign of investors’ pessimism about the economy.

The Nasdaq also fell sharply, down 4.68%, as tech shares continue to droop.

The White House said it is monitoring the sell-offs but pointed to the global nature of the upheaval and insisted the U.