US Equities suddenly fall as earnings season commences

US equities fell sharply into the final hour of trading Monday following Apple’s plans to slow hiring and curb spending next year to prepare for a possible recession. The hiring slowdown and cuts to spending will take place across certain divisions and stem from a move to “be more careful during uncertain times. Apple’s shares closed down 2.1%.

The S&P 500 and Nasdaq each declined roughly 0.8%, while the Dow Jones Industrial Average shed more than 200 points, or 0.7%. Prior to the report, all three major indexes hit session highs of at least 1%.

Fed officials “signaled they are likely to raise interest rates by 0.75 percentage point in July, and expectations for a 100 basis point hike from the Fed at its next meeting on July 26 and 27 rose last week after a hot Consumer Price Index (CPI) June’s reading.

Over 70 companies are scheduled to release results this week. Big tech earnings are set to trickle in, starting with Netflix after market close on Tuesday, Tesla after the bell on Wednesday, and Twitter before the start of trading on Friday.

Monday’s moves in markets come after a rally Friday that saw equities close sharply higher as Wall Street attempted to shake off losses from a turbulent week wrought by June’s shock CPI print. Still, the S&P 500, Dow, and Nasdaq each closed the week lower.