The stock market continued to fall on Monday after the summer rally on Wall Street faded last week, with investors once again growing nervous about aggressive interest rate hikes from the Federal Reserve as experts warn that the "textbook" bear market rally has run out of steam.
The markets fell last week, with the S&P 500 losing 1.5% and the Dow Jones Industrial Average falling 1%.
The euro fell below the U.S. dollar for the second time this year as expectations for more rate hikes from the European Central Bank sent European markets tumbling.
As experts warn of a potential energy crisis this winter, recession fears spiked once again.
The U.S. markets fell as traders anticipated more commentary from the Federal Reserve chair at the Jackson Hole Economic Symposium.
Powell is expected to reiterate what Fed officials have been saying for weeks, that there needs to be a decline in inflation before the central bank can slow the pace of interest rate hikes.
Tech stocks moved lower and led market declines on Monday as investors worried about more rate hikes, with the likes of Amazon andNetflix falling by 2% or more.
The summer gains look like a textbook example of a bear market rally. If the bulls don't get back on the field soon, the S&P 500 will only look worse, according to the firm.
The late summer winning streak that saw stock markets recover a significant - and some would argue overly so - portion of the losses suffered this year ended last week. After falling 20% in the first half of the year, the stock market hit a low point on June 16. Since then, the S&P 500 rallied nearly 15%, though a more than 3% decline last week ended the benchmark index's four week streak of gains.
Bed Bath & Beyond and AMC Entertainment made a comeback during the summer rally. Cineworld is reported to be filing for Chapter 11 reorganization as it struggles to recover from low attendance caused by the swine flu. After last week's news that activist investor Ryan Cohen sold his entire stake in the company, Bed Bath & Beyond continued to fall.
Bank of America doesn't like the bear market rally and predicts new lows for stocks.
The euro is falling below the dollar.
The best-performing stocks during this summer's massive rally are Ford.
Fed officials pledge more big rate hikes until there is a meaningful decline in inflation.