The S&P 500 Is About to Enter a Bear Market. Tesla and Apple Are Leading It Lower.

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Financial markets continue to reel from a surprise acceleration in inflation

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The S&P 500 is poised to enter a bear market on Monday amid fears of a looming recession and more aggressive Federal Reserve action, triggered by a report on rising inflation.

Ahead of Monday’s open, S&P 500 futures dropped 2.4% to 3,804 according to SPX to Dow Jones Market Data. The S&P 500 only has to dip below 3,827 points to enter a bear market —defined as a 20% fall from recent highs.

Amid the carnage, take your pick of big tech names deep in the red ahead of Monday’s Wall Street open.

Shares of Tesla (ticker: TSLA) fell 2.7% in premarket trading, while Apple (AAPL) was nearing a 3% loss, and Nvidia (NVDA) was off 4.5%. Tesla stock had risen in extended trading Friday after the company said in a proxy statement that it proposed to split its stock 3-for-1.

Other tech giants also dropped on Monday with Microsoft (MSFT) falling 2.72%, while Amazon dropped 3.73% and Google parent Alphabet (GOOGL) by 3.41%.

The S&P 500 Index closed 207.68 points or 5.05% last week to 3900.86, marking the largest two week percentage decline since the week ending March 27, 2020.