Stocks fell on Tuesday as the holiday-shortened week kicked off with ongoing concern about the Federal Reserve keeping interest rates elevated as well as a warning from Morgan Stanley that stocks could crash within months.
The S&P 500 was on course for a third consecutive loss. The index last week slipped 0.3%, marking a second straight weekly decline. Markets were still feeling the weight of outlooks from Fed officials last week that more interest rate hikes may be needed to further tame inflation. Investors returned from Monday's Presidents' Day holiday with downbeat outlooks from retailers
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