U.S. stocks tumbled Friday after the Federal Reserve's most closely watched inflation measure came in stronger than expected, in another sign that price pressures have become sticky into 2023.

The S&P 500 (^GSPC) sank 1.1%, while the Dow Jones Industrial Average (^DJI) plopped more than 300 points, or 1%. The technology-heavy Nasdaq Composite (^IXIC) slid 1.7%. Friday marked the worst week for the S&P 500 and Nasdaq since December.

U.S. Treasury yields scrambled higher following the reading. The 2-year note surged 12 basis points to 4.81% while the 10-year note gained 7 basis points to top 3.95%.

The Personal Consumption Expenditures (PCE) price index — the Fed's preferred assessment of how quickly prices are rising across the economy — rose 0.6% in January and 5.4% from last year. On a "core" basis, which strips out volatile food and energy components, prices rose 0.6% for the month and 4.7% from last year.

The report from the Commerce Department also showed that consumer spending rose 1.8% last month from December after falling the previous month.

The numbers support recent indications inflation is not falling at the pace and extent investors have been hoping for, even as prices have stabilized from the peaks of the current inflation cycle.

“First December CPI was revised higher, and now each reading for January surprised to the upside. Inflation’s like an old boyfriend or girlfriend that keeps showing up when you don’t want to see them," David Russell, Vice President of Market Intelligence at TradeStation said in a note.

In individual stock moves, Block (SQ) rose 4.3% after the payments processor reported fourth-quarter financial results that saw profit and revenue top expectations.

Warner Bros. Discovery (WBD) shares fell 1% after the media giant posted a big revenue loss for the final three months of the year.

Boeing (BA) shares closed down 4.8% after the airline manufacturer said it paused deliveries of its 787 Dreamliner jets because of a documentation issue.

Beyond Meat's (BYND) stock rallied 10% after better-than-expected earnings and CEO Ethan Brown said the company is seeing progress in its efforts to cut costs and manufacturing hurdles.

Beleaguered used car retailer (CVNA) plunged 20.5% after reporting a net loss that was nine times wider in the fourth quarter.

The bumpier-than-anticipated road to restoring price stability and strong economic data to start the year — nonfarm payrolls rose by 517,000 in January while retail sales surged 3% — have prompted investors to readjust expectations around the path forward for interest rates, putting a dent in the market's recent momentum.