
The Dow falls nearly 800 points as inflation hits 40-year high
CNN
The Dow dropped more than 700 points on Friday morning after a key inflation report missed estimates and showed a higher-than-anticipated increase in the price of consumer goods.
The May consumer price index rose 8.6% year-over-year, its highest level since 1981. Economists had forecast an 8.3% increase.
That higher number further stoked investors' worries about a possible economic downturn and an increase in interest rate hikes by the Federal Reserve. The central bank is expected to announce a half-percent interest rate hike next week, but it could decide to go higher based on this news.
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