U.S. market indexes fell as investors faced the prospect of global slowdown and stubbornly high inflation.  

The S&P 500 index fell 0.1% to 4,014.50 and the Nasdaq Composite index declined 0.2% to 12,349.30. 

The Fed's lagging response to surging inflation and the growing possibilities of an economic slowdown have dampened the market sentiment around the world. 

With the elevated U.S. inflation and stubbornly high international energy prices after the U.S. and Europe placed sanctions on Russia, interest rates are significantly lagging the consumer prices. 

With no end in sight for war in Europe, crude oil prices are trading above $110 a barrel and wheat prices soared 6% to $12.48 a bushel and extended year-to-date gain to 61%. 

The latest surge came after India restricted wheat exports on the worries that the elevated energy prices are stoking domestic food prices. 

On the earnings front, Home Depot, Target, and Walmart Stores are scheduled to release earnings this week. 

Spirit Airlines jumped 18% after JetBlue launched a hostile takeover offer for $30 a share. Spirit shareholder meeting is scheduled on June 10 to vote on its merger plan with Frontier. 

Twitter Inc declined more than 2% on growing speculation that the billionaire investor Elon Musk may not follow through with his offer to takeover the company. 

Warby Parker declined nearly 4% after the company reported unexpected quarterly loss and revenues fell short of analysts' expectations. 

Carvana Inc jumped more than 10% after the user-car retailer stated in a regulatory filing that the company plans to cut costs and expects to be profitable in 2023 on core earnings basis. 

European markets traded lower after the European Commission lowered euro zone economic growth estimate in the current year to 2.7% from the previous forecast of 4.0% in March and revised lower to 2.3% from 2.7% in 2023. 

Separately, the German statistics agency showed that wholesale inflation perked up to 23.8% in April from 22.6% in March, record increase since 1962 when record keeping began. 

In European trading, the DAX index declined 0.5% to 13,937.77, the CAC-40 index fell 0.2% to 6,348.92, and the FTSE 100 index gained 0.25% to 7,436.98.