Washington: In a cautious start to the trading session, the US stock market opened lower on Friday as investors expressed growing concerns over the potential impact of inflation on economic growth. The Dow Jones Industrial Average slipped 0.6%, the S&P 500 declined 0.7%, and the Nasdaq Composite saw a notable drop of 1.1%.

The downward trend was largely driven by technology stocks, known for their sensitivity to rising interest rates. At the opening bell, the tech-heavy Nasdaq Composite was down by over 1%.

Investors are increasingly apprehensive about the Federal Reserve's strategy to combat inflation through interest rate hikes, fearing it could potentially trigger a recession. Market expectations anticipate a further 0.75 percentage point increase in interest rates during the upcoming Federal Reserve meeting.

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With inflation at a 40-year high, the burden on consumer spending and business investments is becoming increasingly evident. The Federal Reserve's attempts to rein in inflation by raising interest rates carry the risk of overcorrection, potentially leading to a recessionary downturn.

This sell-off in the stock market serves as an indication of investors' concerns about the overall economic outlook. If the Federal Reserve raises interest rates excessively, it could potentially result in a recession and substantial declines in stock prices.

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Several contributing factors are driving the ongoing stock market sell-off, including rising inflation, increasing interest rates, geopolitical tensions arising from the war in Ukraine, the persisting trade conflict between the United States and China, and signs of slowing economic growth.

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While the sell-off is likely to persist in the near term as investors grapple with these uncertainties, a successful containment of inflation by the Federal Reserve without triggering a recession could potentially pave the way for a recovery in the stock market.