- Stocks fell in a decisive pivot that ended the longest weekly rally since November, as short-sellers reappeared and investors became cautious after Federal Reserve officials hammered home the importance of raising interest rates. Treasury yields rose, and the dollar finished its best week since April 2020.

- The S&P 500 index fell for the first time since June, resulting in the benchmark's first weekly loss in five weeks. The tech-heavy Nasdaq 100 underperformed major benchmarks on Friday, with growth-related stocks suffering the most. Meanwhile, the CBOE volatility index, Wall Street's fear gauge, jumped the most in more than two weeks, returning above 20.

- The expiration of $2 trillion in options, which required investors to either roll over existing positions or start new ones, set the stage for a volatile session, as failure to break a key threshold for the S&P 500 around 4,300 appeared to open the door to selling positions, and the bears pounced. Short sellers had their best week since March 2020, as a basket of the most-shorted stocks fell nearly 6%, extending their weekly loss to 12%.

- Officials reiterated their commitment to raising interest rates to combat persistently high inflation ahead of the Fed's Jackson Hole meeting next week. In remarks on Thursday, two voting members of the Federal Open Market Committee – St. Louis' James Bullard and Kansas City's Esther George – reiterated the need for rate hikes, though they differed on the magnitude of the September move. On Friday, Richmond's Thomas Barkin echoed that resolve, noting the risk that those efforts would cause a recession.