Wall Street stocks fell sharply in early trade on Monday, continuing their losing run. The S&P 500 fell 64.81 points or 1.53% to 4,163.67 as of 10:09 am Eastern time and more than 90% of the benchmark index recorded losses. It ended in the red last week, breaking a four-week winning streak.

The Dow Jones Industrial Average fell 426.21 points or 1.26% to close at 33,280.53. The Nasdaq Composite fell 225.48 points or 1.77% at 12,479.74. Retailers and technology companies reported some of the biggest losses. Microsoft declined 2.3% and Target fell 2%.

Also Read | Anthony Fauci to step down as Joe Biden’s medical adviser in December

AMC Entertainment slipped 35.5% after rival Cineworld said it was considering filing for Chapter 11 bankruptcy protection. The entertainment sector is still struggling to recover from the virus pandemic.

However, Signify Health climbed 37.5% after The Wall Street Journal report stated that Amazon would bid for the company.

The yield on the 10-year Treasury bonds rose to 2.99% from 2.97% late Friday.

Also Read | Elon Musk goes after New York ad tech firms in ongoing Twitter lawsuit

The broader market’s losses come as investors try to determine the economy’s direction from here as record high inflation hurts businesses and consumers. Investors watch out for the Federal Reserve’s policies and their efforts to fight high prices without further damaging the economy.

Also Read | How investment and savings strategies changed in last 30 years

Last week’s minutes from the central bank’s July board meeting indicated more rate hikes despite signs of weaker economic activity. Traders are concerned that if it raises rates too high or too quickly it could bring on a recession. The US economy has already contracted through the first half of 2022 and Wall Street will get more information on Thursday when the government releases an updated report on the US economy for the second quarter.

Also Read | US primaries: Ballots may be harder to cast in Florida with new election laws

Investors are also watching this week’s Federal Reserve conference for insights about more possible US rate hikes to cool surging inflation. The Federal Reserve will hold its annual meeting in Jackson Hole, Wyoming on Thursday. Fed Chair Jerome Powell is scheduled to give a speech on Friday morning.

Also Read | US primaries: 3 things to look out for in Florida elections

The Fed meeting will come after a heavy week of company and economic data that showed inflation is still hurting the economy, but consumer spending remains resilient. Decreasing gasoline and food commodity prices have helped relieve some of the pressure.