The major averages tumbled on Friday as Wall Street's summer rally appeared to falter and rate hike fears resurfaced, putting the major averages on pace to potentially end the week on a sour note. The S&P 500 55 points or 1.3%, while the Dow Jones Industrial Average slid 292 points or 0.86%. The Nasdaq Composite slid 260 points or 2%.

For the week, the S&P 500 was last down 1.1%, while the Dow was marginally higher. The tech-heavy Nasdaq is currently down more than 2.5% for the week.

The halt in Wall Street's summer rally came as minutes from the Federal Reserve's July meeting and comments from St. Louis Federal Reserve President James Bullard indicated that the central bank would likely continue hiking rates in the near term, putting a damper on investors' hopes of a slowdown.

Not everyone is convinced this week's moves spell the end of the market's recent rebound.

In other news, Bed Bath & Beyond shares cratered after Ryan Cohen dumped his entire stake in the retailer. The move seemed to sour sentiment among meme stock traders who have bet big on the stock in recent months.

Meanwhile, about a $2 trillion notional value worth of options contracts are set to expire on Friday, which could lead to increased volatility in the market as some holders may be forced to move into their positions.

Disney received positive analyst comments.

Analyst Jonathan Kees said in a note to clients that he expects the segment's operating margins to boost the "company's as per capital spending increases, overseas parks reopen quickly, and international guest attendance grows."

Attendees have returned to Disney's parks in recent months, with the company saying in its recent quarterly earnings report that per capita spending at domestic parks rose 10% over the same quarter last year and rose above fiscal 2019 levels.

Kees believes that Disney's parks segment should continue to offset weaker areas like streaming. At the same time, the company's intellectual property and content rights give it an advantage over its peers.