Dow plunges 1,000 points on Powell speech | Fed Chair warns of 'some pain' ahead | Inflation Reduction Act stock beneficiaries

Stocks tumbled in a brutal sell-off following a hawkish speech from Fed Chair Jerome Powell Friday morning.

VIEW IN BROWSER | SUBSCRIBE FRI, AUG 26, 2022 EVENING BRIEF AS OF FRI, AUG 26, 2022 • 04:57 ET DJIA 32283.40 -3.03% -1008.38 S&P 500 4057.66 -3.37% -141.46 NASDAQ 12141.71 -3.94% -497.56 Most Active DOW NAME LAST CHG %CHG AAPL 163.62 -6.41 -3.77% INTC 33.36 -1.53 -4.39% MMM 129.14 -13.62 -9.54% S&P 500 NAME LAST CHG %CHG AAPL 163.62 -6.41 -3.77% NVDA 162.60 -16.53 -9.23% AMD 91.18 -6.00 -6.17% NASDAQ NAME LAST CHG %CHG AAPL 163.62 -6.41 -3.77% NVDA 162.60 -16.53 -9.23% AMD 91.18 -6.00 -6.17% EDITOR'S NOTE It was a vicious sell-off on Friday after the Dow Jones Industrial Average plunged more than 1,000 points on a hawkish message from Federal Reserve Chair Jerome Powell.    The central bank leader delivered a short but impactful speech out of Jackson Hole, Wyoming. It spurred traders to weigh the implications of higher interest rates kept in place for longer than markets were anticipating.   "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."  Meanwhile, a heated debate continued on whether the Fed can navigate a soft landing, as investors have tried to reconcile often contradictory economic reports such as rising inflation and a robust labor market.    "Recent US economic data has been encouraging, improving the likelihood of the Fed achieving a soft landing. But we think markets may have gotten ahead of themselves in pricing in this scenario," UBS's Global Wealth Management chief investment officer Mark Haefele wrote in a Friday morning note.    In contrast, Fundstrat's Tom Lee said Friday on CNBC's "Halftime Report" that he sees "a lot of evidence this is turning out to be a soft landing," adding that markets have priced in a recession.  Sarah Min | Investing Reporter at CNBC Pro @_sarahmin Watch our live stream for all you need to know to invest smarter. TOP NEWS  Powell comments fuel 1,000-point market rout Friday as stocks slide for a second week Powell warns of 'some pain' ahead as the Fed fights to bring down inflation DOJ reveals redacted affidavit justifying Trump Mar-a-Lago raid These 13 states may hit borrowers with up to $1,100 in state tax liability on forgiven student loans. How to know if your debt cancellation will trigger a bill Fed's preferred inflation measure shows price pressures eased in July Here's how Biden's student loan cancellation affects lenders and servicers Why Peloton's partnership with Amazon may not resolve underlying issues at the fitness company Powell's speech delivers tough lesson to markets: 'Don't fight the Fed' Ford hikes price of electric Mustang Mach-E by as much as $8,475 due to 'significant' battery cost increases Zelenskyy says world narrowly avoided nuclear catastrophe; Putin to boost size of Russian military TOP VIDEO The Satori Fund's Dan Niles on Powell's Jackson Hole speech: A first step to gain credibility with the market CNBC PRO These stocks could be winners even after the Inflation Reduction Act's 1% tax on buybacks SPECIAL REPORTS Long Covid is responsible for about a third of unfilled jobs in the U.S., new research suggests Scammers are using student loan forgiveness as bait, FTC warns. Here are tips to protect yourself Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy © 2022 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS