O'Neil Global Advisors Senior Portfolio Manager Randy Watts says the Fed will be forced to take action after the recent spike in producer and consumer prices.
"People are worried the Fed is going to be too aggressive in their tightening cycle. That tightening cycle is clearly starting. One of the things that's driven the stock market is liquidity, and the Fed is going to start draining some of that excess liquidity out of the market."
Declines in tech stocks led by Microsoft weighed on all three indexes. The Dow retreated nearly a third of a percent. The S&P 500 lost three-quarter percent, while the Nasdaq dropped more than 1%.
Apple was the second biggest decliner on the S&P and Nasdaq. The iPhone maker said it'll require customers and staff to wear masks at its U.S. retail stores.
Uber shares shot higher. CEO Dara Khosrowshahi said the ride-sharing company was looking to sell stakes in non-strategic investments, including its shares in Didi Global, the Chinese ride-hailing company that said last week it would delist from the New York Stock Exchange.
Shares of Beyond Meat jumped 9%. Piper Sandler upgraded its shares and hiked its price target, saying that McDonald's may launch its McPlant burger in about three months. That burger relies on the vegan meat supplied by Beyond Meat.
Pfizer rose. The drug maker said its antiviral COVID-19 pill showed near 90% efficacy in preventing hospitalizations and deaths in high-risk patients. What's more, recent lab data suggests the drug retains its effectiveness against the Omicron variant.
