Stocks sank on Wall Street Friday after investors’ hopes were dashed that inflation might be peaking.
Instead, it got worse last month and marked another 40-year high, ensuring that the Federal Reserve’s foot will remain firmly on the brake for the economy.
Treasury yields soared toward their highest levels in years as investors anticipated that inflation won’t be ebbing any time soon. The S&P 500 fell and closed out its ninth losing week in the last 10. The growing expectation is for the Fed to raise its key short-term interest rate by half a percentage point at each of its next three meetings, beginning next week.
The S&P 500 fell 116.96 points, or 2.9%, to 3,900.86.
The Dow Jones Industrial Average fell 880 points, or 2.7%, to 31,392.79.
The Nasdaq fell 414.20 points, or 3.5%, to 11,340.02.
The Russell 2000 index of smaller companies fell 50.57 points, or 2.7%, to 1,800.28.
For the week:
The S&P 500 is down 207.68 points, or 5.1%.
The Dow is down 1,506.91 points, or less than 4.6%.
The Nasdaq is down 672.71 points, or 5.6%.
The Russell 2000 is down 82.77 points, or 4.4%.
For the year:
The S&P 500 is down 865.32 points, or 18.2%.
The Dow is down 4,945.51 points, or 13.6%.
The Nasdaq is down 4,304.95 points, or 27.5%.
The Russell 2000 is down 445.03 points, or 19.8%.