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U.S. stocks fell on Friday with the Dow Jones Industrial Average on pace to post its worst week since January, after St. Louis Federal Reserve President Jim Bullard told the media the first rate hike could come as soon as next year. Economic comeback plays led the market selloff.
The 30-stock index dumped 387.14 points, or 1.3%, to pause for lunch during a bruising day at 33,436.31, bringing its week-to-date losses to 3.1%.
The S&P 500 swooned 39.37 points to 4,182.49, pushing its loss this week to 1.5%.
The NASDAQ lost 110.56 points to 14,050.79.
Bullard said it was natural for the Fed to tilt a little "hawkish" this week and that the first rate increase from the central bank would likely come in 2022.
The market’s slide began after the Federal Reserve on Wednesday afternoon added two rate hikes to its 2023 forecast and increased its inflation projection for the year.
Friday also coincides with the quarterly "quadruple witching" in which options and futures on indexes and equities expire. Many expect trading to be more volatile in light of this event.
Prices for 10-Year Treasurys were sharply higher, bringing down yields to 1.46% from Thursday’s 1.52%. Treasury prices and yields move in opposite directions.
Oil prices recovered 86 cents to $71.90 U.S. a barrel.
Gold prices recovered two dollars to $1,776.80 U.S. an ounce.
