The Dow plunges by 475 points, while the S&P 500 experiences its most challenging day since January, as concerns over inflation erupt.

On Friday, stocks faced a sell-off as renewed concerns over inflation and geopolitical tensions dampened investor sentiment on Wall Street, with major bank shares contributing to the broad decline.

During one juncture of the trading session, the Dow experienced a decline of nearly 582 points, representing a 1.51% drop, while the S&P 500 slid by as much as 1.75%.

For the week as a whole, the broad market index witnessed a decline of 1.56%, with the 30-stock Dow falling by 2.37%. Conversely, the tech-centric Nasdaq recorded a 0.45% decrease for the week.

Additionally, fresh U.S. import data compounded inflation concerns, adding further pressure to the market.

“We’re observing a growing risk-off sentiment as we approach the weekend. There’s a noticeable flight to safety, with the dollar strengthening, and equities experiencing a sell-off,” noted Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

“This sentiment follows recent inflation data indicating that the economy remains robust and inflation persists; this has prompted investors to adjust their expectations regarding the Fed. That’s part of the reason for the cautious approach heading into the weekend,” added Haworth.