fresh off the markets worst week since june stocks on monday struggled to overcome losses as investors anxiously await the federal reserves looming interest rate hike this week—one thats gearing up to be more aggressive than previously expected as officials struggle to tame stubbornly high inflation the dow jones industrial average fell 109 points or 04 to 30710 shortly after the market opened while the sp 500 and techheavy nasdaq dipped 04 and 03 respectively oil prices fell more than 2 as risks of a recession weighed heavily on the market analyst tom essaye of the sevens report wrote in a monday note the price of a barrel of west texas intermediate fell toward 82 in early trading—nearing its lowest level of the year in a weekend note to clients goldman sachs economists updated their forecast for gross domestic product growth to include no growth in the fourth quarter and 11 growth next year down from 15 previously expected as a result of the possibility of another unusually large rate hike this week earlier this month the economists raised their fed forecast to include a 75 basispoint hike at the wednesday meeting and a oneinfour chance of a fullpoint hike as opposed to the halfpoint hike previously projected even though fed chair jerome powell laid out a case for slowing the pace of tightening after the last increase in june fed officials have sounded hawkish recently and seemed to imply that progress toward taming inflation has not been as rapid as they would like the team explained the market had its worst showing in months last week after the labor department reported inflation rose more sharply than expected in august fueling concerns that fed officials may need to act more aggressively in order to quell inflation the sp is down 10 since its peak in august and has plunged 19 this year the summer rally is over bank of americas savita subramanian wrote in a recent note predicting the sp will fall another 8 by years end meanwhile the nasdaq is down 28 this year the fed has more work to do subramanian said in a weekend note a hawkish fed may be anathema for stocks that have benefited from low rates and disinflation ie most of the sp 500 but lessons from the 70s tell us that premature easing could result in a fresh wave of inflation—and that market volatility in the shortrun may be a smaller price to pay consumer prices rose 83 in the 12 months ending in august—slowing down for a second consecutive month thanks largely to falling gas prices but still more than the 8 increase economists had forecast as investors weigh the prospect of bigger interest rate hikes yields on the 10year treasury hit 3518 this morning the highest level in 11 years dow down 100 points as rattled investors close worst week since june forbes here’s what happens to stocks when the fed raises rates by 100 basis points forbes recession watch stock market rally is over as unemployment starts rising and fears intensify forbes