US stock markets fell sharply Friday after an economic report showed American consumers are growing increasingly fearful of price increases and how President Donald Trump’s tariffs could reignite the inflation crisis.

The S&P 500 was down 1.7% in late trading and heading toward its worst day in two months. The Dow Jones Industrial Average was down 781 points, or 1.8%, and the Nasdaq composite was 2.2% lower, with an hour remaining in trading.

U.S. stocks fell sharply after reports showed worries about President Donald Trump's policies may be hitting the economy.

The selloff came as more than $2.7 trillion worth of options expired, an event which typically spurs heightened volatility.

"The best gains have been had and [it] wouldn’t surprise me to see a significant correction,” hedge fund titan Steve Cohen said in Friday remarks.