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The stock market moved lower once again on Monday—following a sharp selloff on Friday in which the Dow plunged 1,000 points—as investors continue to worry about ongoing interest rate hikes and tighter monetary policy from the Federal Reserve potentially throwing the economy into a recession.


The Dow Jones Industrial Average was down 0.5%, nearly 200 points, while the S&P 500 lost 0.7% and the tech-heavy Nasdaq Composite 1%.

Stocks added to steep losses on Friday, when the Dow plunged 1,000 points after Federal Reserve chair Jerome Powell said in his Jackson Hole speech the central bank will continue to aggressively hike rates and it would take “some time” to achieve price stability.

Powell’s speech also further squashed investor hopes about a potential Fed pivot, with the central bank unlikely to scale back its aggressive rate hike campaign anytime soon despite cooling inflation last month.

Traders are now pricing in a third consecutive increase of 75 basis points at the Fed’s upcoming policy meeting in September, rather than a smaller 50 basis point rate hike, according to CME Group data.

Tech stocks led the market declines as treasury yields rose again on Monday, with the likes of Apple falling more than 1% while chipmaker stocks like AMD and Nvidia each lost nearly 3%.

Following Powell’s speech on Friday, there is a rising risk the Fed could “overtighten” by hiking rates too much and throwing the economy into a recession, several experts including Wharton professor Jeremy Siegel told CNBC on Monday.