By Yasin Ebrahim

Investing.com – The S&P 500 moved off session lows Monday, but continued to flirt with correction territory as investors remained on edge ahead of the Federal Reserve meeting later this week.

This index fell 1.5% and is now in correction territory, with losses around 10% since the peak. It fell 1.2% (404 points), while the Nasdaq lost 1.2%. The index is now in bear territory, with nearly 18% losses since its most recent peak.

Two days remain before the Federal Reserve issues its update on Monetary Policy. Tech stocks have been in decline since many are concerned that Wall Street will continue to expect a more rapid pace of rate rises.

“The January FOMC meeting should continue the Fed’s hawkish policy pivot by signaling that it will soon be appropriate to begin removing accommodation,” Deutsche Bank. On the policy rate, the meeting statement and Chair Powell’s press conference should confirm that liftoff is likely in March.”

U.S. bonds yields were trading in an inverse relationship to price but showed gains in recent weeks.

Alphabet (NASDAQ:), Microsoft (NASDAQ:), Amazon (NASDAQ:), and Apple (NASDAQ:) were down more than 1%, though Meta Platforms (NASDAQ:) turned positive. 

Netflix (NASDAQ): The stock fell by 5% last week after disappointing guidance. However, it was still well above session lows.

Snap (NYSE:), meanwhile, pared some losses despite Wedbush downgrading its rating on social media stock to neutral from outperform, citing concerns over rising competition and the impact of Apple’s privacy changes.

“[W]e see risk to Snap’s revenue growth targets stemming from IDFA headwinds, difficult comps from stellar growth in 2020-21, and increasing competition from TikTok in particular,” Wedbush said in a note.

The year started strong for financial stocks and energy, but they were hit very hard by the recession.

Energy fell 2% as oil prices were pressured by rising dollar even as analysts’ continue to price in the risk of potential supply disruptions amid rising geopolitical tensions.

“The further escalation of the Ukraine conflict and the fraught security situation in the Middle East justify a risk premium on the oil price because the countries involved – Russia and the U.A.E. – are important members of OPEC+,” Commerzbank said in a note.

Kohls (NYSE) escaped the wider market downturn and rallied over 30% due to reports the company had received offers from at least two suitors.

Peloton Interactive, NASDAQ:), also profited from investor wagers on the possibility of deal activity following activist investor Blackwells Capital’s call for the exercise equipment manufacturer to fire John Foley.