Dow dives nearly 900 points as May inflation spike locks in weekly losses for US stocks

The Federal Reserve is set to raise interest rates for the second time in less than a year on Tuesday in order to fight inflation.

The consumer price index rose 8.6% in the year through May, according to the Bureau of Labor Statistics. The economists were expecting a reading of 8.3%.

The stock market went into a bear market for the week. According to Bank of America, the recent bear market rally in US stocks has ended as investors expect more inflation and rate shocks.

The US indexes were at 4:00 p.m.

• S&P 500: 3,900.86, down 2.9%

• Dow Jones Industrial Average: 31,392.79, down 2.73% (880.00 points)

• Nasdaq Composite: 11,340.02, down 3.52%

"We think the US central bank has good reason to surprise markets by hiking more aggressively than expected in June." Energy, used vehicle and airline prices were all strong in the May inflation report.

The Fed is expected to raise the federal funds rate by 75 basis points.

lumber prices have fallen to their lowest point in nine months as mortgage demand sinks The US housing market is seeing its worst contraction since 2006 because of the decline in mortgage applications.

We are six months into a bear market and a recession is on the way.

The price of oil fell. The price of West Texas Intermediate crude went down. The international benchmark of oil fell.

The price of gold rose to $1,875.60 per ounce. The yield went up to 3.16%.

The price of the digital currency dropped to $29,118.10