The major averages plummeted Friday after Federal Reserve Chair Jerome Powell said in his Jackson Hole speech the central bank won't back off in its fight against rapid inflation. The Dow Jones Industrial Average dropped 1,008 points, or 3.03%, to 32,283, with losses accelerating into the close. The S&P 500 fell 3.37% to 4,057 while the Nasdaq Composite slid 3.94% to 12,141.

The major averages declined for a second week. The Dow slid 4.2%. The S&P 500 and Nasdaq Composite lost roughly 4% and 4.4%, respectively, erasing the August gains. The market's struggles over the past 10 days erased some solid rallies earlier in August. The index closed at 4,305.2 on Aug. 16 but has lost more than 5% since then.

Powell reiterated a tough stance against inflation, spurring investors to weigh the implications of higher interest rates for longer.

"Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy," Powell said.

"We do believe the Fed," said Zach Hill, head of portfolio management at Horizon Investments. "We believe what they say that rates are going to be higher for longer and we've seen some repricing of the cuts in 2023. We think there's more to go on that front and it's likely to continue to fuel equity volatility from here."

The sell-off on Wall Street was broad-based, with just five members of the S&P 500 posting gains on

In an ugly day for the markets overall, gold mining stocks are taking it on the chin.

The VanEck Gold Miners ETF has fallen more than 5%, underperforming the major market averages. The fund has now fallen more than 38% from its recent peak in early April.

Several individual mining stocks were down more than 7%, including Coeur Mining and IAMGOLD.

Gold settled down 1.22% for the day, notching a negative week for the precious metal.

Energy is the big winner of the week

Energy is the one bright spot in the market this week, with the S&P 500 energy sector rallying more than 5% so far this week.

The sector, down on Friday amid the market selloff, is the only positive one for the week. Higher oil prices helped propel the stocks higher, with West Texas Intermediate crude up 1.7% this week.

The biggest winner is APA Corp, up 10.9% since Monday.