S&P 500 and Nasdaq Are on Track for Largest Two-Day Declines of the Year

What: The S&P 500 and Nasdaq are experiencing their largest two-day declines of the year so far, with the S&P 500 plummeting **-2.5%** and the Nasdaq dropping **-3.2%**.
Why: Market volatility is being driven by concerns over inflation and interest rates, with the Federal Reserve expected to raise rates further in the coming months.
Signal: The sharp decline in the tech-heavy Nasdaq is a signal that investors are becoming increasingly risk-averse, particularly in the face of rising interest rates.
Target: Analysts are targeting a potential rebound in the markets once the inflation data is released, with many expecting a slowdown in price growth.
Risk: The risk of a prolonged market downturn remains high, with many experts warning of a potential correction in the coming weeks.