Stocks fell ahead of Friday's jobs report amid fears of a deeper recession, with the Federal Reserve expected to keep interest rates at higher levels for longer in order to keep inflation under control.

The S&P 500 fell for the fourth time in a row, dragged down by big tech as treasury yields rose. Apple fell more than 4%, and Amazon fell the most since 2019. A key segment of the treasury curve inverted to new extremes, reaching levels not seen since the 1980s, when the Fed was aggressively tightening. Curve inversions have a history of predicting economic downturns.

Future Fed meeting swaps indicate a peak rate of more than 5.1% around mid-2023, estimates briefly fell below 5%. The benchmark rate is currently between 3.75% and 4%.