Stocks sink on inflation data, close out worst week of year
NEW YORK (AP) – Stocks sank on Wall Street and closed out their worst week since early December. The S&P 500 fell 1.1% Friday to cap its third straight loss. Treasury yields rose sharply.
Stocks have dropped through February as reports on inflation, the job market and spending by shoppers have come in hotter than expected.
That’s forced Wall Street to raise its forecasts for how high the Federal Reserve will have to take interest rates. The latest reminder came Friday when the measure of inflation preferred by the Fed came in higher than expected.
Higher rates pressure the economy and investment prices.