Stocks slumped, with traders positioning for a hot inflation reading and the start of a key earnings season that may provide clues on whether the economy is headed toward a recession. The dollar climbed.

A selloff in megacaps like Tesla Inc. and Apple Inc. weighed heavily on the equity market -- which saw its lowest trading volume of 2022. Twitter Inc. plunged 11% as Elon Musk walked away from his $44 billion deal to buy the company, setting the scene for a legal battle. The euro edged closer toward parity with the greenback, while 10-year US yields dropped below 3%.