Global markets drop after tough week on Wall Street; The yen fell to its lowest level in two decades

The daw (INDU) Fell 880 pips or 2.5% on Friday. The Standard & Poor’s 500 (SPX) cast 2.7% and Nasdaq (NDX) It decreased by about 3%. The US Consumer Price Index rose 8.6% in May, raising concerns that Federal Reserve It will have to act more aggressively to try to tame the price hike.

The feeling of the shock waves was most acute in Asia on Monday. Japan Nikki (N225) It closed down 3%, and the yen fell to its lowest level in more than 20 years. The Japanese currency has fallen rapidly in recent months due to the strong dollar and extremely loose Japanese monetary policy.

In the US, Dow futures are down 1.9% at 5.20 AM ET. S&P 500 futures were down about 2.3%, while Nasdaq futures were down about 2.9%.

“The hangover from Friday’s US CPI data was not helped by concern about China pulling back some of its economic reopening, or the more risky UK economic data,” Societe Generale strategist Kate Jukes said in a research note.

A number of neighborhoods in Shanghai faced another temporary lockdown at the weekend, as authorities launched mass testing just days after easing Covid restrictions on most of their 25 million residents.

The authorities in Beijing’s largest Chaoyang District announced, Thursday, the closure of all entertainment venues, just days after they were allowed to reopen.

CNN’s Nicole Goodkind contributed to this report