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Stocks plummeted Monday as recession fears soared and investors worried time is running out for a year-end rally.

The Dow Jones Industrial Average lost 278 points or 0.84%. The S&P 500 declined 1.18%, and the Nasdaq Composite slumped 1.63%, weighed down by shares of Amazon, which dipped 3%.

The moves followed another down week for stocks after the Federal Reserve delivered a 50 basis point short-term interest rate hike and signaled higher-for-longer rates. Fears that the central bank will cause the U.S. economy to tip into a recession increased as the Fed upped its forecast for future hikes above previous expectations, saying that it now expects to increase rates to 5.1%.

“As we near the end of December, investors are still waiting on that Santa Claus Rally, with stocks coming off back-to-back down weeks for the first time since September,” said Chris Larkin, managing director of trading at E*Trade from Morgan Stanley. “Data showing inflation cooling may have given the market a short-lived boost, but the Fed standing firm with Powell driving home the point that rates could remain elevated for quite a while likely grounded some investors.”

Stocks are set to round out a dismal monthly performance in December after two consecutive losing weeks. So far, the Dow is set to end the month more than 3% lower, and the S&P 500 is down nearly 4.5% in the same timeframe. The Nasdaq Composite is on track to fall 5.4% this month.

Investors will also be watching for a few earnings reports due later in the week. 

“Rates and inflation may have peaked but we see that as a warning sign for profitability, a reality we believe is still underappreciated but can no longer be ignored,” wrote Michael Wilson, equity strategist at Morgan Stanley, in a Monday note.