Stocks continued to slide in Friday afternoon trading after Wall Street got a whiff of stagflation from the latest economic data.
The Dow was down 700 points, 1.7%. The S&P 500 fell 1.9%. The Nasdaq Composite sank 2.6%.
The yield on the 2-year Treasury note was down to 3.93%. The 10-year yield to 4.27%.
The major indexes were on track for their largest monthly declines since March 10.
The latest update on core personal consumption expenditures inflation was hotter than expected, while the University of Michigan’s March survey showed consumer sentiment is dropping and expectations for inflation are rising.
“The concern that continues to arise is that lingering inflation could hamper broader volumes,” writes Citi’s Scott Chronert writes. “Essentially, stagflation fears are getting more priced into the array of outcomes this year.”