Stocks recover as investors jump in after big sell-off

(asterisk)(asterisk)(asterisk)THIS IS A BREAKING NEWS UPDATE.(asterisk)(asterisk)(asterisk) AP’s earlier story appears below.Stocks fell sharply on Monday as investors anticipated inflation-fighting measures from the Federal Reserve and fretted over the possibility of conflict between Russia and Ukraine.The stock market extended its three-week decline and put the benchmark S&P 500 on track for a so-called correction — a drop of 10% or more from its most recent high. The price of oil and bitcoin fell, and so did the yield on 10-year Treasury notes, a sign of investor concern about the economy.The steady decline in stock prices has come as the Fed has signaled its readiness to begin raising its benchmark short-term interest rate in 2022 to try to tame inflation, which is at its highest level in nearly four decades. The Nasdaq fell 1.8% after having been down 4.9% in the early going.“There’s a short-term panic and part of that is the high level of uncertainty around what the Fed is going to do,” said Sylvia Jablonski, chief investment officer at Defiance ETFs. Jablonski said investors haven’t rushed in to buy stocks during the recent decline. Bank of America fell 3%.Investors are monitoring the latest round of corporate earnings, in part, to gauge how companies are dealing with higher prices and what they plan to do as inflation continues pressuring operations.On Tuesday, American Express, Johnson & Johnson, and Microsoft report results.