US Stocks Suffer Worst Week Since January as Inflation Runs Hot

US stocks closed out their worst week since January with a third straight losing session Friday, after inflation unexpectedly accelerated to a 40-year high in May, forcing traders to boost bets that the Federal Reserve will hike rates even more aggressively.

The S&P 500 Index fell 2.9% to cap its ninth weekly decline in the last 10. All of the benchmark’s 11 major sectors were lower as consumer discretionary, technology, and financials each slipped more than 3.6%. Losses from Apple Inc. and Microsoft Corp. dragged down the tech-heavy Nasdaq 100 Index, to a 3.6% decline while the Dow Jones Industrial Average sank 2.7%.