The major averages dropped sharply on Friday after a highly anticipated inflation report showed a faster-than-expected rise in prices and consumer sentiment hit a record low. The Dow Jones Industrial Average shed 880 points, or 2.73%, to close at 31,392. The S&P 500 fell 2.91% or 116 points to settle at 3,900. The Nasdaq Composite sank 3.52% or 414 points to 11,340.

The sell-off was broad, with nearly every member of the 30-stock Dow in the red. Declining stocks on the New York Stock Exchange outpaced advancing ones by more than 5 to 1.

Apple dropped nearly 3.9%, while Microsoft and Dow, Inc. slid about 4.5% and 6.1%, respectively. Salesforce sank 4.6%, and Amazon fell more than 5%

Friday's declines means Wall Street suffered its worst week in months. The Dow fell 4.58% for its 10th down week in the past 11. The S&P 500 and Nasdaq Composite lost 5.05% and 5.60%, respectively, for their ninth losing week in 10 and the worst week since January.

The May consumer price index report came in at its highest level since 1981, putting pressure on the stock market. The report showed prices rising 8.6% year over year, and 6% when excluding food and energy prices. Economists surveyed by Dow Jones were expecting year-over-year increases of 8.3% for the main index and 5.9% for the core index.

The hot inflation readings have flamed concerns about a potential recession for the U.S. economy among investors and the general public. The preliminary June reading for the University of Michigan consumer sentiment index came in well below expectations, hitting a record low.

Traders appeared to be preparing for a more aggressive Federal Reserve in response to the surge in prices. The 2-year Treasury yield, which is seen as one of the most sensitive to Fed rate hikes, jumped above 3% on Friday to hit its highest level since 2008.

Tech stocks were under pressure as investors grappled with higher rates and a potential recession. Shares of Netflix dropped more than 5% following a downgrade from Goldman Sachs. Chip giant Nvidia slid nearly 6%.

Banks and cyclical stocks also moved lower, possibly reflecting recession fears. Shares of Wells Fargo retreated by 6%, Goldman Sachs shed more than 5%. Boeing dropped 5%.

Stocks ended May with a rally off the 2022 lows on the speculation that maybe the worst of the inflation is behind us, but Friday's CPI report dashed those hopes. The S&P 500 is back down nearly 19% from its record and sits roughly even with its May closing low for the year.