Major indices in the US stock market plummeted to close lower on Friday, as they failed to recover from the previous day's losses fueled by inflation climbing to a new record high, and crude oil prices climbed to new highs. 

Consumer prices rose 7.5% year-on-year in January, marking the largest 12-month increase since February 1982, according to the Labor Department. Investors are worried that the Federal Reserve could turn more hawkish and make faster and higher rate hikes this year to tame record inflation.

After falling 1.47% on Thursday, the Dow Jones shed another 503 points, or 1.43%, to close at 34,738.

The S&P 500 was off 85 points, or 1.9%, to end at 4,418. The Nasdaq plummeted 394 points, or 2.78%, to 13,791.

On a weekly basis, the blue-chip Dow dove 1%, while the S&P lost 1.8% and the Nasdaq fell 2.2%.

The VIX volatility index jumped 14.6% to 27.4.

The dollar index rose 0.5% to 96.03, but the yield on 10-year US Treasury notes reversed course to retreat 5.3% to 1.922%.

Precious metals soared with gold adding 2% to $1,863 per ounce, and silver rising 2.02% to $28.66.

The price of the international benchmark Brent crude oil surpassed $95 per barrel amid lack of supply and the ongoing tensions between Russia and Ukraine.

The price of the American benchmark West Texas Intermediate climbed to as high as $94.65 – the highest since Sept. 30, 2014./aa