The Dow tumbled nearly 1.3%, the S&P 500 shed 1.4% and the Nasdaq plunged 1.8%.A Labor Department report out Thursday showed the highest rise in producer prices in seven months in January as the cost of energy products surged.It also showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, offering more evidence that the labor market remains tight."We absolutely could be headed for a period of stagflation...."Jason Ray, founder and investment director at Zenith Wealth Partners, says stagflation may be on the horizon, in which prices stay high amid an economic slowdown."As prices rise and the economy falls and stagnates, I think we definitely see a period of rising prices while we see slower economic growth. So I certainly see that in the cards for the U.S. economy. [FLASH] The median CPI is above 7% for the first time in decades, showing that we think prices are going to be very sticky and continue to rise until the Fed is really able to drill in its mandate and get inflation back to a reasonable level and reasonable amount."Among individual movers, Tesla slid 5.7% as the electric vehicle maker said it was recalling 362,000 U.S. vehicles and fixing them via an over-the-air software update after the U.S. auto regulator said its Full Self-Driving Beta software may cause a crash.Cisco Systems rose 5.2% and hit a nine-month high after the network gear maker raised its full-year earnings forecast.And Roku soared 11% after the video streaming company forecast first-quarter revenue above market estimates.