WSJ headline: S&P 500 Poised for Bear-Market Territory as Stock Futures Drop
Subheadline: Investors raise bets on aggressive Federal Reserve interest-rate increases after U.S. inflation data
The S&P 500 was on track to open in bear market territory, while global stocks tumbled and bond yields jumped as fears over inflation rattled investors around the world.
Futures for the S&P 500 were down 2.2% on Monday. A decline of more than 1.3% at the close of trading Monday would push the index into bear market territory, defined as a 20% loss from a recent high. Contracts for the technology-focused Nasdaq-100, which entered bear market territory in March, were down 2.8%. Futures for the Dow Jones Industrial Average fell 2%.
Markets have swung this year as investors assessed the risks of surging inflation and central bankers’ plans for unwinding stimulus policies that kept economies—and markets—afloat throughout the pandemic. This latest bout of volatility came after data Friday showed U.S. consumer prices rose 8.6% year-over-year in May, the fastest such rise since 1981. The report forced many to reset expectations for higher interest rates from the Federal Reserve.