U.S. equities closed sharply lower on Friday as concerns the Federal Reserve might raise interest rates this month loomed following comments made by key Fed officials.
"The Fed is clearly on a choreographed path; it wants to raise rates this year," said Art Hogan, chief market strategist at Wunderlich Securities. "What the market is trying to re-calibrate is whether that means September or December."
"You've also had some lingering disappointment from Mario Draghi disappointing," he said.
The Dow Jones industrial average closed nearly 400 points lower, with 3M and Boeing contributing the most losses. The index also posted its biggest single day fall since June 24 and its worst week since January.
"The commentary from a voting member that the Fed may be forced to raise rates is important," said Kim Forrest, senior equity analyst at Fort Pitt Capital. "I think the market needs to understand that there may be a rate hike coming. Whether it's September or December, it doesn't matter big picture."
"I think this is a good opportunity to take a hard look at your portfolio and maybe re-position as the market trends a bit lower," said Rob Bartenstein, CEO of Kestra Private Wealth Services. "This part of the year historically has 20-to-25 percent more volatility than any other time of the year." He added, however, he thinks stocks should finish the year on a high note.