More inflation concerns fueled a broad stock market decline Friday, putting most of the major indexes in the red for the week and wiping away all of the market’s gains following a robust rise the day before.

Also Read| US Stock Market: DJIA, S&P500 and Nasdaq red in early trade on Friday

Data showing that US consumers upped their expectations for future inflation hit global markets, sending another warning that the Federal Reserve may need to continue aggressively raising interest rates in order to cool stubbornly rising inflation. The approach increases the likelihood of a recession.

Also Read| Trade Setup: Top 14 things to know before market opens on October 17, 2022

The S&P 500 sank 2.4% after rising as much as 1.2% in the first half. The Dow Jones Industrial Average dropped 1.3%, while the Nasdaq Composite dropped 3.1%. Both indexes also turned lower after marching higher in early trading.

Trading has been unsettled all week and was especially volatile on Thursday after a government report showed that inflation remains very hot. Major U.S. indexes staged their biggest comeback in years on Thursday in a reversal from steep morning losses.

Also Read| Trending Stocks: HDFC Bank, Shree Cement, Bajaj Auto & others in news today

The S&P 500 fell 86.84 points to 3,583.07. The Dow dropped 403.89 points to 29,634.83. The Nasdaq slid 327.76 points to close at 10,321.39.

Small company stocks also fell sharply. The Russell 2000 gave up 46.01 points, or 2.7%, to close at 1,682.40.

Bond yields rose after the Michigan report. The yield on the 10-year Treasury, which influences mortgage rates, rose to 4.02% from 3.86% shortly before the report came out. It’s trading near its highest level since 2008.

Also Read| Stocks to watch on Monday, October 17, 2022

The yield on the 2-year Treasury, which tends to track expectations for future Fed action, rose to 4.51% from 4.40% just before the report came out.

Investors also focused on the latest earnings reports for more clues about how companies are dealing with inflation.

Several big banks were bright spots in the market. JPMorgan Chase rose 1.7% after reporting earnings and revenue that topped Wall Street forecasts. Wells Fargo rose 1.9% after it reported strong revenue.

Also Read| JPMorgan Chase earnings top estimates on gains from higher interest rates

UnitedHealth Group rose 0.6% after raising its profit forecast for the year. More than 90% of the stocks in the S&P 500 closed in the red. Technology stocks were the biggest weights on the index. Chipmaker Nvidia fell 6.1%.

U.S. crude oil prices fell 3.9% and weighed down energy stocks. Chevron fell 3.1%.

Markets in Europe closed higher after British Prime Minister Liz Truss abandoned a planned cut to corporation taxes, scrapping a key part of an economic plan that set off weeks of the market and political turmoil.

Also Read| World’s largest chipmaker TSMC reports 80% jump in net profit

A government report showed that the pace of sales at U.S. retailers was unchanged in September from August as rising prices for rent and food chipped away at the money available for other things. The report was worse than economists anticipated.