US stocks fall as investors await Big Tech earnings

U.S. equities declined at the start of a busy week for corporate earnings as investors are closely watching results for insights into the effect of inflation and consumer spending as the Federal Reserve steps up policy tightening.

The S&P 500 and Nasdaq 100 slipped more than 1% after Monday’s choppy gains. General Electric Co. slid after saying 2022 profit would be near the low end of forecasts on supply chain woes. Twitter Inc. fell after Elon Musk sealed a deal to buy the social-media platform. Meanwhile, Treasuries, the dollar and oil prices all rose, with West Texas Intermediate futures rebounding from a 1.5% drop earlier in the session.

The prospect of slower economic expansion alongside persistent inflation is leading to a febrile mood in markets. The panoply of risks spans the pandemic, supply-chain disruptions, Fed tightening and Russia’s grinding war in Ukraine. The search for portfolio buffers in the U.S. is evident in the highest relative cost of loss-protecting put contracts in two years.