Nasdaq Composite Index: -2.66% or -301.10 points to 11,038.92
Stocks traded lower on Monday, as market participants now expect the Federal Reserve to move even more aggressively than previous anticipated in response to Friday's fresh 40-year high inflation report. The Dow Jones Industrial Average slumped over 800 points, while the S&P 500 Index and Nasdaq Composite fell nearly 4% and 5% lower, respectively.
The S&P 500 fell into bear market territory on Monday, closing 21% below its recent record high from January. The index's last bear market was in March 2020 during the start of the coronavirus pandemic.
Investors are growing increasingly nervous towards the Federal Reserve's upcoming policy-setting meeting later this week, with a new rate decision set for Wednesday. Before Friday's red hot inflation report, market participants widely expected a half-point rate hike decision for June. However, with inflation reaching a new 40-year high of 8.6% in May, investors fear the Fed will pull even more aggressive moves to hamper rising prices, risking economic growth in the process.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): -3.87% or -150.95 points to 3,749.91
Dow Jones Industrial Average (NYSE: DIA): -2.79% or -874.73 points to 30,518.06
Nasdaq Composite Index (NASDAQ: QQQ): -4.68% or -530.80 points to 10,809.23
Coinbase shares drop following Bitcoin plunge:
Coinbase (NASDAQ: COIN) shares dropped on Monday after the broader cryptocurrency market tumbled. More crypto market has lost $200 billion in value since the start of the weekend as investors look to shed riskier assets.
Bitcoin, the world's largest cryptocurrency, fell to its lowest levels since December 2020 on Monday, trading below $24,000. While the coin has been losing value for months, the sudden drop over the last 24 hours has brought Bitcoin below a key threshold and is impacting the broader crypto environment.
The drop was felt across other crypto exchanges, with Binance and Celsius temporarily pausing all withdrawals and transfers due to current market conditions.
Amazon to begin U.S. drone deliveries this year:
Amazon (NASDAQ: AMZN) announced Monday it will start delivering products using Prime Air drones in Lockeford, California, later this year, marking first time the e-commerce giants plans to use drones for customer deliveries in the United States.
The company plans to deliver products by drone into the backyards of customers and will use their feedback to improve the service's system. Amazon said the drone technology can detect and fly around obstacles and recognize moving objects on the horizon, and change course to safely avoid them. The drone also checks for other obstacles like people, animals and other objects at the delivery site before delivering the package, Amazon said.
Here's how benchmarks started trading after market open:
S&P 500 Index: -2.26% or -88.32 points to 3,812.54
Dow Jones Industrial Average: -1.69% or -531.94 points to 30,860.85