Dow skids nearly 900 points Friday, stocks book sharp weekly losses after hot inflation reading

Major U.S. stock indexes finished sharply lower Friday, after a May reading of inflation showed no signs of a slowdown in high costs of living. The Dow Jones Industrial Average tumbled about 881 points, or 2.7%, to end near 31,392, while also booking a 4.6% weekly skid. That marked the worst daily percentage drop for the blue-chip index since its 3.6% tumble on May 18, according to FactSet Data. The S&P 500 index shed 2.9% and the Nasdaq Composite Index closed 3.5% lower. A surprisingly hot reading of the consumer-price index in May showed annualized U.S. inflation increased to 8.6%, topping the 40-year high of 8.5% seen in March. Investors have been jittery about what high inflation means for the Federal Reserve’s plan to significantly hike interest rates this year. Some on Wall Street now expect to see an even more aggressive pace to higher rates this summer. For the week, the S&P 500 closed down 5.1% and the Nasdaq booked a 5.6% fall, according to FactSet.

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