Stocks sink after inflation comes in hotter than expected
By STAN CHOE and DAMIAN J. TROISE
AP Business Writers
NEW YORK (AP) – Stocks sank on Wall Street Friday after investors’ hopes were dashed that inflation might be peaking.
Instead, it got worse last month and marked another 40-year high, ensuring that the Federal Reserve’s foot will remain firmly on the brake for the economy.
Treasury yields soared toward their highest levels in years as investors anticipated that inflation won’t be ebbing any time soon.
The S&P 500 gave up 2.9%, closing out its ninth losing week in the last 10.
The growing expectation is for the Fed to raise its key short-term interest rate by half a percentage point at each of its next three meetings, beginning next week
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