Dow Report; Lowest 500 Point Drop since October

Stocks recorded their biggest losses on Friday after months of growth after it was announced the central bank may increase interest rates early next year.
Investors are trying to determine when the bank will be raising interest rates as they remain at their lowest currently. James Bullard, the Head of the St. Louis branch of the fed told reporters that inflation rates are higher than expected and that interest rates increase could happen as soon as next year as opposed to the previous prediction of rate increases in 2023.
The current rise in inflation is called out to be temporary whereas Wall Street suspects that it will last longer than expected.
The Dow Jones industrial average fell 533.37 points to 33,290.08. The blue-chip average reflected its worse low since October, a drop of 3.5%. On the other hand, the benchmark S&P 500 index dropped 1.3% followed by banks, utilities and energy companies. This was its first week of loss in the last four weeks. For the week, S&P 500 lost 1.9%, the lowest since February. The index remains at 2.1% lower, Nasdaq composite fell 0.9%, lowest for the week.
The central bank has raised inflation expectations to 3.4%, a percentage higher than its March projections. With feds aid for the economy easing up, markets are expected to shift after periods of zero interest rates and emergency programs.
Increasing vaccinations also play a role in normalizing the economy which would increase prices for raw materials as well as consumer prices. Banks are suffering from blows due to shrinking interest rates with the financial stocks in S&P 500 down 2.5%.
Despite Joe Biden signing a bill for Juneteenth, U.S stock markets are expected to remain open on Friday. The last day of the week will experience the quarterly expiration of U.S options and futures contracts that may increase trading volume as well as market volatility.

©Photo: Bebeto Matthews, AP