The Dow Jones Industrials stumbled 336.86 points, or 1%, to conclude the week at 32,817.05.
The S&P 500 dropped 42.27 points, or 1.1%, to 3,970.05.
The NASDAQ Composite dumped 195.46 points, or 1.7%, to 11,394.94.
Boeing shares slipped more than 4% after the company temporarily halted delivery of its 787 Dreamliners over a fuselage issue. Shares of Microsoft docked 22% and Home Depot fell 0.9%.
The major averages are headed for a losing week. The S&P 500 is down 2.7% and is set for its worst week since Dec. 9. The Dow is down almost 3.0% this week and headed for its fourth straight losing week. The NASDAQ is 3.3% lower, and on pace for its second negative week in three.
The core personal consumption expenditures price index, the Fed’s preferred measurement of inflation, rose 0.6% in January and 4.7% from the prior year, coming above economists’ expectations.
The report added to worries that the Fed may have to keep rates higher for longer to quell inflationary pressures.
Prices for the 10-year Treasury sagged, raising yields to 3.95% from Thursday’s 3.89%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.18 to $76.57 U.S. a barrel.
Gold prices were thumped $8.80 to $1,818.00 U.S. an ounce.