US stocks fall after new inflation data boosts outlook the Fed will stay aggressive

• US stocks slid on Friday after key inflation data came in hotter than expected.
• Core PCE, the central bank's preferred inflation measure, rose 0.6% in January, higher than economists' estimates.

US stocks dipped on Friday as investors brace for a more hawkish Federal Reserve after key inflation data for January came in hotter than expected.

Core Personal Consumption Expenditure data, the central bank's preferred inflation measure, increased 0.6% from a month earlier, higher than economists' estimates and the most since June.

The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average were all headed for a losing week after swinging between gains and losses over the past few trading sessions. The S&P 500 is on track for its worst week since mid-December.

Treasury yields jumped, with the two-year yield hitting 4.79%, its highest level since 2007. The 10-year yield rose eight basis points to 3.96%

"We've got an extremely difficult economy to read," Former Treasury Secretary Larry Summers said. "People may be reading a bit too much into the moment in terms of economic strength — relative to the way things could look very differently in a quarter or two."

Here's where US indexes stood at the 9:30 a.m. ET open on Friday:

• S&P 500: 3,960.63, down 1.29%
• Dow Jones Industrial Average:32,804.46, down 1.05% (349.45 points)
• Nasdaq Composite: 11,402.02, down 1.63%

Here's what else happened today:

• Former Treasury Secretary Larry Summers outlined four troubling signs that indicate why the US economy may be inching closer to the cliff edge, he told Bloomberg.
• Tesla boss Elon Musk reiterated his view that the central bank's tightening could crush the value of the entire stock market. "A bad Fed decision affects the lives of everyone," he tweeted.
• In a flurry of tweets this week, top economist David Rosenberg dashed hopes that the US economy can escape recession, adding that Wall Street is lying about a 'no landing' scenario.
• These four charts show how Putin's war in Ukraine transformed the oil and gas landscape.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil fell o.9% to $74.67 per barrel. Brent crude, oil's international benchmark, fell 0.6% to $81.57 a barrel.
• Gold fell 0.5% to $$1,818 per ounce.
• The yield on the 10-year Treasury gained eight basis points to 3.96%.
• Bitcoin fell 0.05% to $24,130.33.