Dow slides 300 points to cap off first weekly decline in a month amid inflation worries

US stocks fell on Friday and recorded their first weekly loss in a month, with stocks dropping about 1% as investor concerns about rising inflation continued to weigh on prospects of an economic recovery.

On Thursday, Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen both expressed concerns at the current pace of rising inflation and expect the trend to continue over the next few months before cooling down as supply chain disruptions are resolved.

If inflation doesn’t cool off soon, the Fed may be forced to hasten its hawkish policies like rolling back monthly bond purchases and raising interest rates, which could hurt risk assets like stocks.

Meanwhile, June retail sales data that showed a surprise increase of 0.6%, besting expectations of a 0.4% decline.

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