Stocks dropped on Friday to end a negative week for Wall Street as market participants feared a looming global recession following the Federal Reserve's hawkish monetary policy decision earlier this week. The Dow Jones Industrial Average dropped nearly 500 points, while the S&P 500 and Nasdaq Composite fell 1.7% and 1.8%, respectively.

Here's how the market settled to close out the week:

S&P 500 Index (SPY  ): -1.72% or -64.76 points to 3,693.23

Dow Jones Industrial Average (DIA  ): -1.62% or -486.27 points to 29,590.41

Nasdaq Composite Index (QQQ  ): -1.80% or -198.88 points to 10,867.93

The Dow notched a new low for the year on Friday and closed below 30,000 for the first time since June 17. The index ended the day 19.9% below its previous intraday record, positioning it dangerously close to bear market territory.

Friday's session also caped Wall Street's fifth negative week in six, with the Dow falling 4%, while the S&P and Nasdaq lost 4.65% and 5%, respectively. The week's moves follow the Federal Reserve raising interest rates by another 75 basis points for a third straight time. Fed Chair Jerome Powell also signaled that policymakers are prepared to issue a 'hard landing' for the economy in order to restore price stability in remarks on Wednesday.

The central bank also signaled that it will issue at least another 75 basis point rate hike by the end of the year.

Notably on Friday, Goldman Sachs (GS  ) cut its year-end target for the S&P 500 to 3,600 from 4,300, citing rising rates and implying a 4% downside from the benchmark's current closing.

"The expected path of interest rates is now higher than we previously assumed, which tilits the distribution of equity market outcomes below out prior forecast," Goldman's David Kostion said in a note.

"Based on our client discussions, a majority of equity investors have adopted the view that a hard landing scenario is inevitable and their focus is on the timing, magnitude and duration of a potential recession and investment strategies for that outlook," he added.

Stocks expected to suffer the worst impacts from a recession all fell on Friday, with growth stocks like Apple (AAPL  ), Amazon (AMZN  ), Microsoft (MSFT  ) and Meta Platforms (META  ) all lower.

At an event on Friday, Powell noted that the U.S. economy may be entering a "new normal" amid its current state of high-inflation, low-growth.

"We continue to deal with an exceptionally unusual economic set of disruptions. As policymakers, we are committed to using our tools to help steer the economy through what has been a uniquely challenging period," Powell stated at a Fed Listens event. "The insights you share in these events help us hone in on the challenges and opportunities that are shaping what we might think of as the new normal of the American economy."