Michael M. Santiago | News Getty Images | Getty Images Stock futures showed more losses on Monday – after the worst week for the key averages since June – as interest rates rose ahead of the Federal Reserve’s two-day meeting this week. Futures tied to the Dow Jones Industrial Average fell 275 points, or 0.9%. S&P 500 and Nasdaq 100 futures fell 0.9% and 1%, respectively. The yield on the 10-year note topped 3.5% on Monday, its highest level in 11 years, and rates continued to rise ahead of a possible decision by the Fed this week to raise the benchmark rate by another three-quarters of a point for to be tamped by inflation. After some brief hope over the summer that the Fed might end its aggressive tightening campaign soon, investors have again started dumping stocks on fears that the central bank will go too far and push the economy into recession. Investors come into the new week focused on the Fed’s latest policy meeting, which begins on Tuesday. The central bank is expected to raise interest rates by another three-quarters of a point, although investors are also watching for guidance on corporate earnings ahead of the start of the next reporting period in October. “With the S&P 500 hovering below the all-important 3,900 level and the 10-year Treasury yield inching closer to 3.5%, the Fed-sensitive 2-year note is flirting with 3.9%, suggesting that its aggressive campaign Fed for extermination Eliminating inflation should be taken seriously,” said Quincy Krosby, chief global strategist for LPL Financial. “The canary in the coal mine may not be dead yet, but it’s probably struggling to breathe.” Stocks fell last week as investors reacted to a hotter-than-expected inflation report and a dour FedEx warning of a “significantly deteriorated” global economy. The major averages posted their fourth weekly loss in five weeks. Beyond the Fed meeting, there are only a few economic data releases this week, including August housing starts on Tuesday and initial jobless claims on Thursday. There are also a handful of corporate gains on deck, including Costco, Darden Restaurants, General Mills and Lennar. —CNBC’s Patti Domm contributed reporting.
