The Dow falls 880 points as inflation hits 40-year high

It's been yet another week of losses for US markets after steep drops on Friday.
The Dow (INDU) plunged after a key inflation report missed estimates and showed a higher-than-anticipated increase in the price of consumer goods, closing down 880 points for the day, or 2.5%. The S&P 500 shed 2.7% and the Nasdaq dropped about 3%.
The May consumer price index rose 8.6% year-over-year, its highest level since 1981. Economists had forecast an 8.3% increase. The core index, which excludes food and energy prices, rose by 6%, slightly higher than estimates of 5.9%.

Those numbers sent investors reeling. Already worried about a possible economic downturn, they now fear that the Federal Reserve will recognize inflation as entrenched in the economy and increase interest rates further.

The central bank is expected to announce a half-percent interest rate hike next week, but based on this news it could decide to go higher.

"We think the US central bank now has good reason to surprise markets by hiking more aggressively than expected in June," wrote Barclays analysts in a research note on Friday. "We realize it is a close call and that it could play out in either June or July. But we are changing our forecast to call for a 75 [basis point] hike on June 15."
The move would be historic -- the last time the Fed delivered a 75 basis point hike was in November of 1994, nearly three decades ago.

https://www.cnn.com/2022/06/10/investing/markets-fall-drop/index.html