Investors will face significant losses on Monday for the second day in a row as markets continued to react to last week’s dismal inflation data. Here’s an update on what’s happening:Flirting with bears: The S&P 500 opened 2.5% lower on Monday, pushing it into bear market territory. That’s basically when an index or security falls below 20% from a recent high. The index could recover before the trading day is over. Another crypto crash: Major cryptocurrencies also fell sharply over the weekend, led by Bitcoin, which sank to a low not seen since 2020. In what some on social media are calling “Black Monday”, it is at least the second major crypto crash in the past few months. Binance, the world’s largest cryptocurrency exchange, temporarily paused withdrawals of $BTC on Monday, due to what it called a “trade stalled”. Tech stocks plunge: Controversial tech stocks took another hit on Monday, falling further and further away from their high-flying days of the early pandemic, as lockdowns and shifting social habits fueled a boom in online activity. Crypto exchange platform Coinbase was one of the hardest hit, with shares falling more than 12% on Monday and nearly 80% so far. Amazon fell more than 4% and Meta 3%. Overall, the tech-heavy Nasdaq was down nearly 3% on Monday and 30% so far.
Markets are reacting in part to Friday’s news that consumer prices rose 8.6% in May, the highest level since 1981 and higher than experts had expected. According to a recent Financial Times poll, 70% of academic economists now expect the United States economy to slide into recession by 2023.
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