US stocks extended recent losses in early trading Friday on continued concerns about the length of time interest rates will need to remain high to tame above-target inflation.
The Federal Reserve has raised interest rates 11 times since March last year, and recently indicated it may have to do so again to tackle inflation, which remains stuck above its long-term target of two percent.
Investors also responded to the news that the embattled Chinese construction giant Evergrande filed for bankruptcy in the United States amid growing concerns about the country's real estate sector.
The Dow Jones Industrial Average fell 0.4 percent to 34,347.73 shortly after trading began.
The broad-based S&P 500 fell 0.6 percent as well to 4,345.42, while the tech-rich Nasdaq Composite Index dropped 0.9 percent to 13,208.78.
In the bond markets, yields on the 10-year Treasury note eased off recent highs, but remained elevated.
"The Dow is on pace for its worst week since March," Art Hogan from B. Riley Wealth Management wrote in a note to clients before the markets opened.
"Meanwhile, the S&P 500 is headed for a third straight week of losses, a streak that hasn't happened since February," he added.
Shares of the beauty products firm Estee Lauder fell by almost five percent in early trading after posting a decline in annual profits.
The company blamed a slower-than-expected post-pandemic recovery in Asian countries, including China.
