Recession and rates are on top of the agenda as the bulls take a backseat ahead of the Federal Reserve meeting that could now push rates higher at a faster pace.
Stock markets from New York to Tokyo headed lower as US inflation surged to a 40 year high and traders raised bets that US central bank will raise rates maybe by 75 bps this week.
Noted economists across the US have been highlighting the risk of a recession for the world's largest economy. Markets are fearful of a recession, so stock investors are watching the bond market, which is sending fresh signals that the economy could be weakening.