The major averages sold off into the close finishing lower Friday, with all the major averages posting losses for the week as worries persisted over continued rate hikes. The Dow Jones Industrial Average shed 305 points, or 0.9%, to close at 33,476. The S&P 500 tumbled 29 points or 0.73% to end at 3,934 while the Nasdaq Composite fell 77 points or 0.7% to finish at 11,004.

For the week, the Dow fell 2.77% to post its worst week since September. The S&P tumbled 3.37%, while the Nasdaq dropped 3.99%.

Friday's moves came after November's producer price index showed higher-than-expected wholesale prices, which rose 0.3% last month and 7.4% over the previous year. Core PPI, which excludes food and energy, also topped expectations.

Optimistic consumer sentiment data alleviated some fears, but attention remains laser-focused on next week's busy economic calendar.

Attention shifted toward the consumer price index due out Tuesday, which is expected to show whether inflation has receded. Later in the week, the Federal Reserve will likely deliver a 50 basis point hike at the end of its December meeting on Wednesday. While the increase would be smaller than the previous four hikes, concerns have mounted over whether the central bank can architect a soft landing and prevent a recession.

Investors have long hoped for a pivot from the Fed's aggressive tightening stance, but the data fails to support that desire, said Stephanie Lang, chief investment officer at Homrich Berg.

"It's our expectation that we really need to see inflation come down closer to the fed funds rate for the Fed to pause, and we still have quite a bit of delta between those numbers," she said. "There's still a bit of work to be done on the inflation front to really see that as the reality."

If history is any guide, a trend higher in the market could kick off as soon as next week, according to Jeffrey Hirsch of the Stock Trader's Almanac.

"Over the last 21 years, the market typically begins its march higher on or around the tenth trading day of December," he wrote. "This year the tenth trading day is December 14, the same day as the Fed announcement."

This period, he said, is also near the time that tax-loss selling pressures typically subside.

Next week, Hirsch expects the Federal Reserve to deliver a widely expected 50 basis point rate hike, but continue shifting toward a "more dovish stance." That, he said, would be enough of a reason to kick off a rally into the end of the year and even 2023.

"We remain bullish and look for additional confirmation for this stance from the market next week," he wrote.

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