Stocks hit session lows, with the Dow losing 700 points as Powell’s

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.

CNBC Pro subscribers can read the full story here.

— Michelle Fox

Here are three stocks making the biggest moves Friday:

• Affirm — Shares plunged more than 20% after the consumer lending company reported a larger-than-expected quarterly loss, and issued a disappointing outlook.
• Farfetch — The online luxury retailer stock surged nearly 30% after the company topped earnings expectations.
• Electronic Arts — Shares gained roughly 5% following a Swedish news report that Amazon is expected to make an offer to buy the company. However, sources have told CNBC’s David Faber that there is no such deal.

Check out more of the day’s biggest movers here.

— Sarah Min, Tanaya Macheel

During afternoon trading, information technology, consumer discretionary and communication services were the biggest laggards in the S&P 500. The sectors were down 3.4%, 3.3% and 3.3%, respectively, as investors fretted over the likelihood of higher interest rates.

Meanwhile, energy and utilities were the best-performing sectors in the broader market index. The sectors were down 0.6% and 1.1% each.

— Sarah Min

Federal Reserve Chairman Jerome Powell’s Friday speech was more hawkish than anticipated, weighing on stocks, according to Chris Senyek of Wolfe Research.

“A more hawkish tone was largely expected coming into his speech this morning,” Senyek wrote in a Friday note. That said, the market is interpreting his tone as even more hawkish than those expectations.

After Powell’s remarks, both yields on the U.S. two-year treasury and the March 2023 fed funds future were up by roughly 0.5%, and stock slumped. Going forward, it’s likely that stocks will continue to trade down according to Senyek.

“This speech is likely to keep downward pressure on equity markets, with the “Growth” trade and “long-duration” subsectors & stocks getting hit hardest… think a reversal of the trade since mid-June,” he wrote.

Senyek also reiterated his bearish stance on stocks. Going forward, he sees inflation readings and other economic data as the largest market drivers through the end of the year.

“We continue to believe that (1) core inflation is going to be a thorn in the Fed’s side and prove to be very persistent, and (2) headwinds from Fed tightening have only just started to show up in economic readings and a demand-driven recession is going to hit at the end…