Stocks dropped on Friday morning after a highly anticipated inflation report showed a faster-than-expected rise in prices.
The Dow Jones Industrials plummeted 809.38 points, or 2.5%, to 31,464.53.
The S&P 500 handed back 111.85 points, or 2.8%, to 3,905.97.
The NASDAQ Composite plunged 389.12 points, or 3.3%, to 11,365.11.
The selloff was broad, with nearly every member of the 30-stock Dow in the red. Apple dropped 2.9%, while Microsoft and Dow, Inc. fell more than 3%.
The drop for stocks means that Wall Street is headed for yet another losing week. Entering Friday, the Dow was lower by 1.9%, on track for its 10th down week in the past 11. The S&P 500 and NASDAQ Composite were both off by more than 2%, on pace for their ninth losing week in 10.
Tech stocks were under pressure as investors grappled with higher rates and a potential recession. Shares of Netflix dropped nearly 5% following a downgrade from Goldman Sachs. Chip giant Nvidia slid 4%.
Banks and cyclical stocks also moved lower, possibly reflecting recession fears. Shares of Wells Fargo shed 4%. Boeing dropped 3.6%.
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% year over year, and 6% when excluding food and energy prices. Economists surveyed by Dow Jones were expecting year over year increases of 8.3% for the main index and 5.9% for the core index.
The hot inflation flamed concerns about a potential recession for the U.S. economy. Elsewhere, the preliminary June reading for the University of Michigan consumer sentiment index came in well below expectations, hitting a record low.
Treasury prices sagged, raising yields to 3.11% from Thursday's 3.05%. Treasury prices and yields move in opposite directions.
Oil prices dropped 20 cents to $121.31 U.S. a barrel.
Gold prices forked over $16.30 to $1,836.50 U.S. an ounce.