The Nasdaq dropped 1.6%, the S&P 500 dropped 1.5%, and the Dow Jones Industrial Average dropped 1.5%.

The Federal Reserve members' repeated call for rates to stay higher for longer at a time when the impact of civil upheaval in China raised concerns about a slowing global economy harmed market sentiment, which led to a steep decline in the Dow on Monday.

The Nasdaq dropped 1.6%, the S&P 500 dropped 1.5%, and the Dow Jones Industrial Average dropped 1.5%.

Markets are "underpricing risk that the FOMC will have to be more aggressive rather than less active in order to contain the considerable inflation in the U.S.," according to Federal Reserve Bank of St. Louis President James Bullard.

Bullard has previously stated that the Fed may need to increase rates to a range between 5% and 7%. The words followed those of Federal Reserve Bank of New York President John Williams, who reinforced the idea that inflation was "far too high."

Following a sluggish start to the week amid concerns of social unrest in China over Covid restrictions, the remarks further worsened investor confidence and dragged the whole market further into the red.

Tech took the lead in the downward trend, under pressure from Apple when news broke that the tech giant might not be able to produce six million iPhone Pro models due to difficulties at a Chinese supplier, Foxconn.

The lack of iPhones, according to Wedbush, "may shave off about at least 5% of units in the quarter and potentially up to 10% depending on the next few weeks in China around Foxconn manufacturing and protests," as have other Wall Street analysts raised worries.

Alphabet lost more than 1%, while Microsoft and Meta Platforms also saw declines of more than 2%.

Oil prices dropped on worries about decreasing demand in China, the world's top energy exporter, and news of social upheaval there also hurt energy companies.

(Sources: investing.com, reuters.com)