Shares of Twitter are down 11% since opening trading on MondaySince it is expected that a legal dispute come in Elon Musk And the social media company is taking center stage after the world’s richest man pulled out of the deal. 44 billion dollars.

MuskThis was announced by the CEO of Tesla on Friday Terminated the deal to buy Twitter because the company violated several provisions of the merger agreement.

Twitter plans to sue Musk this week And force him to complete the purchase, they told him Reuters Knowledgeable people.

On Monday, Musk criticized Twitter’s stance and wrote about it In the legal battle, the company will reveal information about bots and spam in court.

A series of tweets which included several memes, It was Musk’s first public response since Friday’s announcement.

Twitter shares ended Friday at $36.81, a 32% discount to Musk’s $54.20 offer.As they were hurt by the stock market decline and investor skepticism about the deal.

“We believe Elon Musk’s intention to terminate the merger is based more on the recent market selloff than on Twitter’s ‘failure’ to comply with his demands.” Jefferies analyst Brent Till said in a note.

“Absent a deal, we wouldn’t be surprised to see the stock bottom out at $23.5.”.

The contract obligates Musk to pay Twitter fees A billion dollar break If you are unable to complete the transaction for reasons such as termination of acquisition financing or regulatory blockage. Despite this, The termination fee does not apply if Musk terminates the deal on his own.

Futures in red

Except for Twitter, all U.S. stock indexes fell on Monday, preparing for a leg in which earnings could come under pressure. Fears of an economic downturn are growing Due to aggressive increase in interest rate.

After a dismal first half of the year, US stocks started July on an upbeat note, although market participants fear that Future quarterly results may result in other losseswith income that is potentially low.

About 20 minutes after a trading session, the industry average Dow Jones fell a 0.6 percent to 31,162.32.

The S&P 500 broad based fell by 1.2 percent to 3,852.12, while the composite index broken downtechnology rich, fell by 2.1 percent at 11,395.27, after five days of steady gains last week.

Last week’s trade was a mess, but Investors were somewhat relieved by the easing of commodity prices and The US Federal Reserve is signaling a more aggressive program of rate hikes amid growing concerns of a global recession.

The market is now pricing in a 75 basis point rate hike at the end of July. However, concerns about the pace of future rate hikes rose after Friday’s stronger-than-expected jobs report.

In the report, in which it was mentioned A The job market remains strongIt helped ease some fears of an imminent recession, but added to concerns about the Fed tightening more aggressive monetary policy to quell runaway inflation.

Big banks like it JPMorgan Chase, City group i Morgan Stanley They will release earnings later this week, and their results will be watched for signs of slowing economic growth.

Investors will also focus on US consumer price data. Later this week to gauge the state of inflation and how aggressively the Fed might respond.

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