US stocks continue sell-off as traders brace for more Fed rate hikes later this week

• US stocks dropped Monday, continuing last week's downturn which was the worst week since June.
• Traders are shedding stocks in anticipation of another jumbo rate hike from the Federal Reserve this week.

US stocks dropped Monday ahead of the Federal Reserve's two-day meeting, which begins Tuesday. The dip is a continuation of Friday's sell-off, in which indexes capped off their worst five-day stretch since June.

The 10-year Treasury yield briefly touched 3.51% Monday for the first time since 2011, with traders broadly expecting a third consecutive outsized rate hike as the Fed moves to stem inflation.

"We look for the September statement to say 'further increases in the target range will be appropriate', as opposed to 'ongoing increases' as was the case in July," Bank of America analysts said in a Monday note to clients. "In addition, we think the statement could then add, 'the committee believes restoring price stability will likely require a restrictive policy stance for some time.'"

Outside the US, the People's Bank of China, Bank of Japan, and Bank of England all have rate decisions coming this week.

Here's where US indexes stood as the market opened at 9:30 a.m. on Monday:

• S&P 500: 3,850.28, down 0.60%

• Dow Jones Industrial Average: 30,622.55, down 0.65% (199.87 points)

• Nasdaq Composite: 30,622.55, down 0.52%

Here's what else is going on today:

• Larry Summers urged the Fed to keep raising rates, and he warned that hiking too slowly risks an economic disaster.
• After FedEx's stock slump, founder Fred Smith told Fox Business that the US should brace for stagflation because there are not enough workers to meet demand.
• Mohamed El-Erian warned that the Fed's policy moves may fail to squash inflation, but could still tank the economy and job market.
• Germany's central bank warned that the economy is contracting already, and the natural gas squeeze means it'll keep shrinking all winter.
• The effects of China's weakening economy have rippled through global markets — here are the winners and losers.

In commodities, bonds and crypto:

• Oil prices dropped, with West Texas Intermediate down 3.40% to $82.27 a barrel. Brent crude, the international benchmark, inched lower 2.84% to $88.79 a barrel.
• Gold edged lower 0.54% to $1,674.40 per ounce.
• The 10-year yield ticked higher 3.4 basis points to 3.481%.
• Bitcoin dropped 4.80% to $18,763.00, hitting its lowest level in three months.