Friday 10 June 2022 10:46 PM Dow drops 500 points as red-hot inflation blows past expectations and drags ... trends now

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Wall Street veered sharply into the red on Friday following a new inflation reading that was worse that economists had expected, fanning worries about more aggressive steps by the Federal Reserve to tame rising prices.

At the closing bell, the Dow Jones Industrial Average fell 880 points, or 2.7 percent, to 31,392.79. The S&P 500 dropped 2.9 percent and the tech-heavy Nasdaq lost 3.5 percent.

The Labor Department's report on Friday showed that the consumer price index jumped 8.6 percent in May from a year ago, the fastest increase since December 1981 and much hotter than expected, a sign that inflation has not yet peaked. 

The new figures suggested that the Federal Reserve could continue with its rapid interest rate hikes through September to combat inflation, after already raising rates by 75 basis points since March.