Monday’s selling — the worst daily decline in a month — hit several corners of the financial markets. Every major U.S. stock sector ended lower, as did benchmark indexes in Europe and Asia. Oil prices and government bonds similarly dipped. And Bitcoin fell below $24,000, an 18-month low. The cryptocurrency has lost around half its value this year.

On Wednesday, the Fed is set to release its latest economic projections, which investors are likely to parse closely. They may be reassured if the central bank projects a path for interest rate increases that is more moderate than expected.

But for investors to really stop worrying, they’ll have to see inflation slowing in the coming months, said Lauren Goodwin, an economist and portfolio strategist at New York Life Investments.

Another unanswered question for investors is the impact of the Fed’s other policy change. After buying government bonds to help keep cash pumping through the financial system, an emergency measure that began early in the pandemic, the central bank is reversing course.

“This is a major wild card for investors,” Ms. Goodwin said.

A second stage to the market’s downturn is likely still to come, Ms. Shah said. Stocks could fall further as evidence of the economic trouble appears in corporate earnings, consumer spending and other data that show that the worst expectations for the economy are being realized. The new wave of selling may not happen until closer to the end of this year.

All the talk of recessions and bear markets could also — at the margins at least — add to the economic pressure, in part because people see their investment, retirement or college savings accounts shrink and start to pull back on spending.

“The behavioral effect is that people will start to slow down on spending, become much more cautious, start to save more,” said Beth Ann Bovino, the chief U.S. economist at S&P Global. “That’s not a good outcome for the economy. It slows growth.”

Reporting was contributed by Alexandra Stevenson, Jason Karaian, David Yaffe-Bellany, Clifford Krauss, Ben Casselman, Eshe Nelson, Melina Delkic and Isabella Simonetti.

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