Financial markets reeled on Monday, with Wall Street’s losing streak stretching into a fourth week and the S&P 500 falling deeper into its biggest decline since the early days of the pandemic.
The benchmark fell 1.8 percent in early trading, a drop that would leave it more than 10 percent below a high reached in early January. A drop of that scale is known as a correction — and is seen as marker of a shift in sentiment as the market adjusts to a new outlook on the economy and corporate profits.
That adjustment is happening because investors in the stock and bond markets are anticipating the Federal Reserve will have to raise interest rates quickly this year, as it tries to tamp down inflation. The sudden shift in this outlook had already left stocks sharply lower in the first three weeks of the year.
More details on the Fed’s policy decision, aimed at easing the unsettling pace of inflation, are expected to be revealed after the central bank’s policy committee meets, with an…