Stocks dropped sharply on Friday after a highly anticipated inflation report showed a faster-than-expected rise in prices and consumer sentiment hit a record low.
The Dow Jones Industrial Average shed 880 points, or 2.73 percent, to close at 31,392.79. The S&P 500 fell 2.91 percent to settle at 3,900.86. The Nasdaq Composite sank 3.52 percent to 11,340.02.
The sell-off was broad, with nearly every member of the 30-stock Dow in the red. Declining stocks on the New York Stock Exchange outpaced advancing ones by more than 5 to 1.
Apple dropped nearly 3.9 percent, while Microsoft and Dow, Inc. slid about 4.5 percent and 6.1 percent, respectively. Salesforce sank 4.6 percent, and Amazon fell more than 5 percent.
Friday’s declines meant Wall Street suffered its worst week in months.
The Dow fell 4.58 percent for its 10th down week in the past 11. The S&P 500 and Nasdaq Composite lost 5.05 percent and 5.6 percent, respectively, for their ninth losing week in 10 and the worst week since January.
The May consumer price index report came in at its highest level since 1981, putting pressure on the stock market.
The report showed prices rising 8.6 percent year over year, and 6 percent when excluding food and energy prices.
Economists surveyed by Dow Jones were expecting year-over-year increases of 8.3 percent for the main index and 5.9 percent for the core index.
“It’s confirming some of the fears I’ve been hearing from investors this week,” said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets.
She said alarm over inflation has been driving stocks lower this week.