Stocks are falling on Wall Street Friday as dispiriting evidence keeps piling up to show inflation isn’t coming down as quickly as hoped, according to a report from the Associated Press.
The S&P 500 was 1.1% lower in early trading and on track for its third straight weekly loss. The Dow Jones Industrial Average was down 326 points, or 1%, at 32,827, as of 9:39 a.m. Eastern time, while the Nasdaq composite was 1.4% lower.
Stocks have dropped through February as a stream of reports have shown everything from inflation to the job market to spending by shoppers is staying hotter than expected. That’s forced Wall Street to raise its forecasts for how high the Federal Reserve will have to take interest rates and then how long to keep them there.
Higher rates can drive down inflation, but they also raise the risk of a recession because they slow the economy. They likewise hurt prices for stocks and other investments.
