The S&P 500 fell 55.41 points, or 1.3%, to 4,166.45 in a widespread slump.
Investors are still recalibrating their moves following the Federal Reserve’s signal this week that it may raise short-term interest rates twice by late 2023, earlier than expected.
But any pullback in Fed support would be a big change for markets, which have been feasting on ultra-low rates for more than a year.
That’s hurt stocks of banks, oil producers and other companies whose profits are closely tied to the strength of the economy in particular.
The Dow Jones Industrial Average, which is full of companies whose profits move more with the economy, lost 3.5% this past week.
The S&P 500 is only about 2% below its all-time high set on Monday, and the Dow is within 5% of its record set last month.
When the gap is wide, the industry can make big profits from borrowing cash in short-term markets and lending it out at longer-term rates.
The 10-year Treasury yield, which is less directly affected by Fed moves, ended the week close to where it started, though there were some jagged moves up and down in the interim.
The quickly recovering economy and some supply shortages have helped send prices soaring across the economy recently, from lumber to airline tickets to used cars.