Geoffrey Smith 

Investing.com – The U.S. stock exchanges began the week in a new downturn as concerns about increasing interest rates, weaker profits and rising inflation combined with fears of investors causing panic. 

At 9:40 am ET (1440 GMT), it was down 282 point or 0.8% at 35,949. The was also down 1.3%, and was down 1.9%. 

The main reason for this move was fear of inflation and an aggressive tightening by the Federal Reserve. After taking the time to read the employment report, I was able to absorb it. It showed that inflationary pressures continue to rise in the form higher wages and an ever-evaporating pool for spare labor.  Goldman Sachs (NYSE) analysts revised their forecasts, saying that the Fed is now expected to increase rates by four times this fiscal year. They also expect to see the Fed begin selling off large amounts of its bonds in July.

Additionally, corporate profits were being affected by supply chain problems, such as the yogawear manufacturer. Lululemon Athletica Inc (NASDAQ: ) reported that its holiday sales have been disappointing. Lululemon shares fell by 4%, to their lowest level since June. It remains in the top 10 most vulnerable companies to rising interest rates. Although it has fallen more than 25% from its peak, Friday’s closing stock price was 53 times the trailing earnings.