Federal Reserve Chairman Jerome Powell's remarks at the Jackson Hole symposium finished Wall Street's latest rally. Powell noted the central bank is adamant in its fight against inflation, raising the possibility of higher interest rates for a bit longer. Traders unpacked the personal consumption expenditure (PCE) index's first monthly drop in over two years, a narrower-than-anticipated drop in the core PCE, and a consumer confidence index that came in above expectations as well.

Stocks sold off in response, with the Dow shedding 1,008 points and logging its worst daily percentage drop since May, while both the Nasdaq and S&P 500 sank into red ink, posting their worst daily performance since June. All three major indexes also marked steep weekly losses. Meanwhile, the Cboe Volatility Index (VIX) settled at its highest level since July and scored a nice weekly win to boot. 

The Dow Jones Average (DJI - 32,283.40) shed 1,008.4 points, or 3% for the day, and 4.2% for the week. All 30 Dow members ended lower today, with 3M (MMM) pacing the laggards with a 9.5% drop.

The S&P 500 Index (SPX -4,057.66) lost 141.6 points, or 3.4% for the day, and 4% for the week. Meanwhile, the Nasdaq Composite (IXIC - 12,141.71) fell 497.6 points, and 4.4% for the session, or 4.4% for the week. 

Lastly, the Cboe Volatility Index (VIX - 25.56) rose 3.8 points, or 17.4% for the day, or 24.1% for the week. 

GOLD, OIL PRICES MOVING IN OPPOSITE DIRECTIONS

Oil prices finished higher on Friday, nabbing a 3% weekly gain after recent production cut talks. Recession fears and the impact it could have on crude demand left investors feeling uneasy, however, with the potential for more interest rate hikes still on the table. October-dated crude added 54 cents, or 0.6%, to close at $93.06 per barrel on the day.

Meanwhile, gold prices settled sharply lower on the heels of today's Fed comments, which hinted at more interest rate hikes as the central banks attempts to tamp down inflation. December-dated gold shed $21.60, or 1,2%, to close at $1,749.80 an ounce, and fell 0.7% for the week.

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