S&P 500 closes in bear market territory as investors digest inflation data and brace for larger rate hike

• The S&P 500 closed in bear market territory Monday, and the index touched its lowest point of 2022.
• Crypto also entered free fall Monday, and bitcoin shed as much as 15%.

The S&P 500 closed in bear market territory on Monday, with the benchmark index falling more than 20% below its January record high. The Nasdaq Composite lost more than 4% and the Dow Jones Industrial Average plunged 875 points.

Recession fears continue to move among investors ahead of a key Federal Reserve meeting this week, and after Friday's hot inflation reading. The expectation is growing for an outsized rate increase of 75 basis points versus the 50 basis point rise that investors had been expecting before the Consumer Price Index showed inflation in May rising to a 41-year high.

BlackRock analysts are advising caution in the current landscape, and say it isn't yet the time to buy the dip.

"We're not pounding the table on buying stocks right now because of a growing risk that the Fed tightens too much - or that markets believe it will, at least in the near term. Signs of persistent inflation, like last week's CPI report, may fuel the latter risk," BlackRock said.

Here's where US indexes stood as the market closed 4:00 p.m. on Monday:

• S&P 500: 3,749.91, down 3.87%

• Dow Jones Industrial Average: 30,518.06, down 2.79% (874.73 points)

• Nasdaq Composite: 10,809.23, down 4.68%

Jefferies said it expects the Fed to hike rates by 75 basis points this week, a move that will push the US dollar to record highs. The US Dollar Index on Monday reached a fresh 2o-year high above 105.

A "major breakdown" in the stock market has set the S&P 500 up for another 8% decline as support breaks, technical analysts said Monday. "Momentum gauges point lower, and short-term oversold conditions are not widespread," Fairlead Strategies' Katie Stockton said.

And investor and "Rich Dad Poor Dad" author Robert Kiyosaki said tuna is the best investment today — as gold, silver, and bitcoin aren't edible. The personal finance guru warned that soaring inflation could lead to starvation.

Crypto was caught in Monday's market carnage. Anthony Scaramucci, for his part, said bitcoin could "easily" recover to hit $100,000 over the next 24 months, thanks to tech developments and macroeconomic improvements.

The total crypto market cap moved below the $1 trillion threshold Monday, after hitting a market cap of more than $3 trillion last November when bitcoin hit its record high.

Meanwhile, Bloomberg reported that the US wants companies to buy Russian fertilizer as agricultural commodities markets spiral and a global food crisis looms. The US and EU have included fertilizer exemptions in their sanctions on Russia, which allow trade to continue flowing for the key commodity.

Oil moved lower, with West Texas Intermediate down 0.41% to $120.17 a barrel. Brent crude, the international benchmark, moved down 0.34% to $121.60 a barrel.

Gold edged lower 2.86% to 1,821.80 per ounce. The 10-year yield rose 24.3 basis points to 3.398%.

Bitcoin fell 15.66% to $23,205.85.