the sp 500 officially dropped into bear market territory monday as global financial markets continue to decline following the latest round of us inflation data the spdr sp 500 etf trust spy was trading lower by 27 on monday the spdr dow jones industrial average etf trust dia dropped 2 and the invesco qqq trust series 1 qqq dropped 35 fed in focus selling pressure from friday continued on wall street after the labor department reported an 86 increase in the consumer price index in may the highest inflation reading in any month since 1981 the federal open market committee begins its twoday meeting on tuesday the market is pricing in a 708 chance the federal reserve will raise interest rates by 05 at this weeks meeting but chances of a 075 rate hike have now risen to 292 according to cme group the idea that there is some goldilocks outcome in the cards or soft landing is a mockery danielle dimartino booth ceo and chief strategist of quill intelligence said monday consumer sentiment is at record lows and jobless claims have surged since bottoming in midmarch leaving little doubt that the us has entered recession the sp 500 dropped as low as 3750 on monday its lowest level since march 2021 the index has now dropped more than 20 from its alltime high of 4818 in january and has crossed over into bear market territory there have been 14 bear markets since the end of world war ii the median bear market decline has been 30 from recent highs and the average downturn has lasted an average of 359 days according to bespoke investment group risk assets on the move cryptocurrencies including bitcoin btcusd and ethereum ethusd took a big hit on monday as well as investors concerned about rampant inflation dumped risk assets bitcoin prices dropped 159 to around 23500 while ethereum prices fell 183 to around 1230 big tech stocks were among the hardest hit on monday morning nvidia corporation nvda shares dropped 63 tesla inc tsla shares fell 61 and amazoncom inc amzn shares declined 49 benzingas take it seems unlikely at this point the fomc will raise interest rates by 075 this week given that investors could interpret a hike that large as a sign of panic from the fed investors should expect a 05 rate hike but the tone of the accompanying commentary by fed chair jerome powell will likely have a significant impact on investor sentiment moving forward