The article discusses the sharp decline in U.S. stock markets, with the S&P 500 falling 3.2% and the Nasdaq composite dropping 4.1% on fears of a potential recession. The sell-off was triggered by concerns over stubbornly high inflation and the Federal Reserve’s aggressive interest rate hikes to combat it. Investors worry that the Fed’s actions could tip the economy into a recession. The yield on the 2-year Treasury rose to 4.63%, its highest level since 2007. This inversion of the yield curve, with short-term yields higher than long-term rates, is seen as a reliable signal of an impending recession. The article highlights the impact on various sectors, with technology stocks like Apple and Amazon leading the declines. It also notes the broader economic challenges, including high inflation, supply chain issues, and the war in Ukraine.