Major United States stock markets closed in the red territory on Monday as Fitch Ratings cut the 2023 world growth outlook due to intensified rate hikes from central banks. Traders also observed the latest ISM service sector data, which recorded further growth in November, sending the euro down by 0.44% against the dollar at 3:59 pm ET to sell for $1.04853. The Dow Jones plummeted 1.40% at the closing bell, shedding almost 500 points, as Salesforce sank 7.35% after announcing that Slack’s CEO will be leaving the company. The Nasdaq 100 plunged by 1.73%, with Tesla dropping 6.37% after denying plans to cut production in China. The S&P 500 decreased by 1.79%, as VF Corp. saw a sell-off of over 11.30% after downgrading its earnings prospects. The data came on the heels of a survey last week that showed stronger-than-expected job and wage growth in November, challenging hopes that the Fed might slow the pace and intensity of its rate hikes amid recent signs of ebbing inflation. “Today is a bit of a response to Friday, because that jobs report, showing the economy was not slowing down that much, was contrary to the message which (Chair Jerome) Powell had delivered on Wednesday afternoon,” said Bernard Drury, CEO of Drury Capital, referencing comments made by the head of the Federal Reserve saying it was time to slow the pace of coming interest rate hikes. “We’re back to inflation-fighting mode,” Drury added. Investors see an 89% chance that the U.S. central bank will increase interest rates by 50 basis points next week to 4.25%-4.50%, with the rates peaking at 4.984% in May 2023. The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year, which saw the central bank attempt to arrest a multi-decade rise in inflation with record interest rate hikes. The aggressive policy tightening has also triggered worries of an economic downturn, with JPMorgan, Citigroup and BlackRock among those that believe a recession is likely in 2023. In other economic data this week, investors will also monitor weekly jobless claims, producer prices and the University of Michigan’s consumer sentiment survey for more clues on the health of the U.S. economy. NN: I got PPI this week and CPI next week a day before the FED meets. These reports will help me get a bead of weather or not we get the Santa Clause rally and how big it could be.