The US stock market opened in bear market territory on Monday, a sign of growing pessimism about the economy.

The outlook for interest rates and corporate profits deteriorated as higher-than- expected inflation and lower-than- expected economic growth caused markets around the world to tumble. The stock market in Asia and Europe fell.

At the opening of trading, the S&P 500 fell 2.5 percent. The S&P 500 fell into bear market territory last month, but recovered to close above it. The S&P 500 recorded its worst weekly loss in six months last week.

The benchmark U.S. stock index is close to a bear market and equity futures suggest that we haven't seen all the negative sentiment expressed yet, according to analysts at ING. Nine of the past 10 weeks have seen the S&P 500 fall.

A report on Friday showed a surge in inflation in the U.S., which rattled markets, as investors worried that the Federal Reserve may have to raise interest rates higher and faster than expected to rein in rising prices, a move that could hit the U.S. economy.

Global investors sold stocks, bonds, and other assets as inflation is running high in many countries, supply chains are snarled, and forecasts for economic growth are being lowered.

The stock markets in Japan and South Korea closed in the red. The index for China's biggest companies that are listed in Hong Kong fell 3.6 percent. The Japanese currency fell to a 24 year low.

After another round of mass testing over the weekend, officials in Beijing and Shanghai reimposed social distance measures. China's economic growth has been dealt a blow by the country's "zero Covid" policy.

The index in Europe was down 2.2 percent. The country's economy unexpectedly shrank in April, which led to a 1.7 percent fall in the stock market. Growth was expected to increase.

The price of European bonds fell as traders priced in a series of interest rate increases by the European Central Bank. The yield on German and Italian government bonds, which move in opposite directions, hit multiyear highs.

During times of inflation and turmoil, Cryptocurrencies have been hit hard. The largest digital currency fell to an 18-month low. Half of its value has been lost this year. The value of all cryptocurrencies fell below $1 trillion for the first time in over two years.