US stocks were on track for their worst month since the 2008 financial crisis, as Wall Street suffered a multi-week loss due to concerns about a string of interest rate hikes to combat inflation.

The Nasdaq, the darling of investors after the coronavirus outbreak confined Americans to their homes and forced them to rely on video streaming and gadgets for work, is down 11% in January. That is more than the 10% loss it suffered when the COVID-19 pandemic began in March 2020, and it is the most since the financial crisis began in October 2008.

The S&P 500 index, which represents the top 500 US stocks, is down 8% in January, compared to its previous highest monthly loss of nearly 13% in March 2020.

The Dow Jones Industrial Average, which represents stocks across the United States, is down 6% in January, the most since a 14% drop in March 2020.

"Wall Street has gone from debating how aggressive one should rotate out of tech into cyclicals, to sell it all," Ed Moya, an analyst at online trading platform OANDA, said. "Investors have two big worries: it seems everyday traders are reminded inflationary pressures are not going away anytime soon and could prompt the Fed into becoming overly aggressive in tightening monetary policy."

According to Moya, another investor concern is that profit growth expectations may have been overly optimistic and underpriced in light of rising labor costs. Geopolitical risks, he adds, are also adding to the selling pressure.

After the COVID-19 crisis erupted, the Federal Reserve slashed US interest rates to nearly zero and has kept them there ever since to aid recovery.

As a result of the government's trillions of dollars in relief spending, higher wage payouts by companies, and supply chain disruptions caused by the pandemic, the US Consumer Price Index increased by 7% in the year to December, the fastest rate since 1982. To combat such inflation, the Federal Reserve may have to implement a series of interest rate hikes.