Dow falls more than 20% from record high on inflation fears

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Dow falls more than 20% from record high on inflation fears

U.S. stocks fell deeper into a bear market because investors were worried that the Federal Reserve's aggressive fight against inflation might lead to a downward spiral for the U.S. economy.

The Dow Jones is now down 20.5% from its record high settlement level on January 4, confirming the bear market for the 30 stock index.

The shares of big tech companies, including NVIDIA Corporation NVDA and Meta Platforms, Inc., also fell on Monday.

The Nasdaq 100 fell 0.51% to close at 11,254. On Monday, the S&P 500 fell 1.03%, while it fell to 11 on Monday. The Dow was trading around 330 points to settle at 29,260. The biggest decline in real estate and energy stocks on the S&P 500 was recorded on Monday by a majority of the sectors closed on a lower note. Consumer staples stocks went up a bit in the previous session.

The Chicago Board Options Exchange's CBOE Volatility Index VIX increased by 2.8% to 30.75 points, and was close to three-month highs.

The CBOE Volatility Index, commonly known as VIX, is a measure of the equity market's expectation of volatility based on S&P 500 index call and put options.