Stocks fell Friday as investors wrapped up a volatile week ahead of the Federal Reserve's policy meeting.

The Dow Jones Industrial Average slid 288.87 points, or by 0.83%, to 34,618.24. At its lows, the index completely wiped out Thursday's 332-point rally. The S&P 500 was lower by 1.22% to 4,450.32. The Nasdaq Composite dropped 1.56% to 13,708.33.

The Dow closed out a positive week, up by 0.12%. However, the S&P 500 and Nasdaq both suffered a second straight week of losses, lower by 0.16% and 0.39%, respectively.

Information technology was the worst-performing sector in the S&P 500, down nearly 2%. Adobe shares fell more than 4% a day after the software firm posted better-than-expected{

Stocks making the biggest moves after hours

These are the stocks making the biggest moves in after-hours trading:

Lennar — Shares slid 0.5% even after the home construction firm posted third-quarter earnings results that topped Wall Street's expectations. Lennar posted earnings of $3.87 per share, versus the $3.51 expected by analysts polled by LSEG. Revenues came in at $8.73 billion, ahead of the $8.45 billion expected by analysts.

Adobe — Adobe shares lost nearly 2% in extended trading despite posting better-than-expected earnings results. For the fourth quarter, Adobe said it expects earnings to range between $4.10 and $4.15 per share, ahead of the $4.06 expected by LSEG. Revenues are expected to come in roughly in line with expectations.

— Lisa Kailai Han, Samantha Subin

Arm Holdings

Auto stocks General Motors and Stellantis N.V. rose Friday, while Ford inched lower. Thousands of members of the United Auto Workers went on strike after failing to reach a deal with the automakers Thursday night.

Elsewhere, Lennar shares slid 2.5%. The home construction firm posted third-quarter results that beat on the top and bottom lines late Thursday.

On the economic front, the University of Michigan's consumer sentiment survey showed one-year inflation expectations dropped to 3.1% in September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, matching its lowest since December 2020.

Wall Street is parsing through a mixed batch of economic data ahead of the Fed's policy decision, set to be announced Sept. 20. The central bank is widely expected to hold rates steady next week, but traders will seek insight into how policy makers are thinking about inflation from here.

On Thursday, August's producer price index showed core PPI was held in check last month, though the headline number rose more than expected. Meanwhile, August's consumer price index on Wednesday showed core CPI was slightly hotter than expected on a monthly basis.

"There was initial investor enthusiasm around inflation data coming in not too far out of expectations. On one hand, the inflation data was hotter than expected, but investors shrugged that off earlier this week thinking that the Fed would not be inclined to raise rates again next week, based on the August inflation data," said AXS Investments' Greg Bassuk.

"But I think having digested the additional economic data that's come out, as well as ongoing geopolitical pressures and other developments, we're seeing today investors pulling back and taking a breather," Bassuk added.

— CNBC's Jeff Cox contributed to this report.

Stocks close lower Friday

Stocks closed lower Friday.

The Dow Jones Industrial Average slid 288.87 points, or by 0.83%, to 34,618.24. At its lows it completely wiped out Thursday's 332-point rally. The S&P 500 was lower by 1.22% to 4,450.32. The Nasdaq Composite dropped 1.56% to 13,708.33.

The Dow closed out a positive week, up by 0.12%. However, the S&P 500 and Nasdaq both suffered a second straight week of losses, lower by 0.16% and 0.39%, respectively.

— Sarah Min

Buy UFC-WWE stock, UBS says

UBS is bullish on TKO Group.

Analyst Ryan Gravett initiated coverage of the stock, which represents the merged WWE and UFC, on Friday. His target price for shares implies the stock could rise about 22.1% from where it finished Thursday's session.

"The rare pure-play in live sports with rights renewals & synergies on the horizon," he wrote in a note to clients announcing the call.

— Alex Harring

Utilities sector on pace for biggest weekly gain in the S&P 500

Utilities stocks have outperformed this week, putting the S&P 500 sector on pace for a more than 3% gain.

Duke Energy and Southern Company are the biggest winners in the sector, up more than 5% week to date. Shares of Eversource Energy, DTE Energy and PPL Corporation have jumped more than 4% each.

NRG Energy is the only stock in the sector on track for a loss, down 0.8% week to date.

— Samantha Subin

Netflix, chip equipment stocks among biggest weekly Nasdaq losers

The Nasdaq Composite erased earlier weekly gains on Friday, putting the tech-heavy index on pace for a 0.5% loss for the week. The concentrated Nasdaq-100 is slated for a 0.6% loss.

Some of the biggest laggards include chip equipment stocks KLA Corporation, Lam Research and Applied Materials, down at least 7% each. Adobe's shed more than 6%, while On Semiconductor's slumped 5.4%. Netflix is the biggest loser in the Nasdaq-100, headed for a 10.6% weekly loss.

Despite the downtrend, some stocks are poised for weekly gains. That includes Charter Communications, PayPal and Qualcomm, up more than 6% each. Tesla is the biggest winner, on pace for a 9.2% gain, followed by Moderna.

— Samantha Subin

Rising interest rates require investors to be more selective, says Ivy Zelman

Investors must be more selective about homebuilding stocks in a rising interest rate environment, according to housing market analyst Ivy Zelman.

"I think you really have to be stock picker in this market, and you have to recognize there are builders that are gaining share, executing and generating strong returns, and have balance sheets that are rock-solid," Zelman told CNBC's "Squawk on the Street" on Friday.

— Lisa Kailai Han

Diabetes device stocks fall on Friday

Stocks tied to companies that make medical devices for diabetes fell on Friday. Dexcom fell 4.4%, making it one of the worst performers in the S&P 500, while Insulet fell more than 3%.

The moves come after Bloomberg News reported on Thursday afternoon that Apple has selected a new leader for its team working to develop a noninvasive blood sugar monitoring device.

Raymond James analyst Jayson Bedford also cut price targets for both stocks, according to FactSet.

— Jesse Pound

See the stocks making the biggest moves midday

These are some of the stocks making the biggest moves midday:

• Ford, General Motors, Stellantis — Shares of Ford rose slightly, while General Motors gained 1% and Stellantis was up 2% as a targeted strike by the United Auto Workers began.
• Planet Fitness — Shares tumbled 13% after the gym chain's board pushed out CEO Chris Rondeau.
• Nucor — The steelmaker fell 5% after offering weaker-than-expected guidance for third-quarter earnings.

See the full list here.

— Alex Harring

Stocks hit session lows in early afternoon trading

Stocks hit session lows in early afternoon trading.

The Dow Jones Industrial Average slid 256 points, or by 0.73%. The S&P 500 was lower by 1.04%, and the Nasdaq Composite dropped 1.41%.

— Sarah Min

Dollar index on pace for longest weekly win streak since 2014

The Dollar Index is headed toward its 9th straight weekly gain for the first time since Oct. 3, 2014. The Dollar Index marked a 12-week win streak then, which is the longest winning streak on record.

Week to date, the Dollar Index is up 0.16%.

— Hakyung Kim, Gina Francolla

Earnings growth rebound likely in 2024, says Edward Jones strategist Mona Mahajan

The market has already gone through an earnings recession, according to Edward Jones senior investment strategist Mona Mahajan. However, the picture is likely changing in the coming quarters, according to the strategist.

"Q3 we're starting to reemerge, and in Q4 we could start to see a rebound in earnings growth, especially after easier year-on-year comparisons," Mahajan told CNBC's "Squawk on the Street" Friday.

The earnings growth rebound could even reach double-digits in 2024, Mahajan added.

"Were looking at a more normalized earnings growth picture, combined with valuations, especially outside of the Magnificent Seven, that may have some room to expand," said Mahajan. "That gives you a better backdrop we think overall for for at least some expansion in your portfolio's broadening of market positioning."

— Hakyung Kim

Investors still see stocks rising even with late summer slump, Vanguard says

The August slump in the stock market was not a sign that investors were growing more pessimistic, according to Vanguard.

The asset management firm said in a Vanguard Investor Expectations Survey report on Wednesday that investors in August expected stocks to return 5.5% over the next 12 months. That was the same projection as in June, when the rally was in full swing.

"Although this year's market rally paused in August, investor expectations remain elevated as summer comes to a close," Xiao Xu, an analyst in Vanguard Investment Strategy Group, said in the report.

— Jesse Pound

Arm shares are slightly higher Friday after blockbuster IPO-driven rally

Shares of Arm Holdings added 0.8% during midday trading Friday, crawling back slightly from its previous rally. The stock popped nearly 25% during Thursday's trading session, when the company made its blockbuster Nasdaq debut through an initial public offering that priced shares at $51 each and valued the company at about $54.5 billion.

Some analysts are concerned about Arm's valuation.

Needham earlier initiated coverage of British semiconductor stock with a hold rating, but said the company's valuation may look "full" in a post-smartphone era. Quilter Cheviot earlier told CNBC that "the pricing is expensive."

Investors are focusing on some of the risk around the company, including its exposure to China and rising competition from a rival semiconductor architecture, called RISC-V, that is backed by some of Arm's biggest customers. Arm's chip architecture is in 99% of the world's smartphones.

— Pia Singh

Planet Fitness shares sink 15% after board ousts CEO in shocking move

In a move that stunned investors and employees alike, Planet Fitness ousted company veteran Chris Rondeau from his post as CEO, the workout chain said Friday in a press release.

The stock dropped 15% in the wake of the announcement, hitting a 52-week low.

— Drew Richardson, Gabrielle Fonrouge

Redburn Atlantic upgrades Estée Lauder stock to neutral, cites strong fundamentals

Estée Lauder's company fundamentals remain intact despite necessary investments to grow the stock, according to Redburn Atlantic.

The firm upgraded the cosmetic stock to neutral from sell in a Friday note, but lowered its price target to $150 per share, which equates to roughly 3% downside from Thursday's $154.24 close. The stock is higher by more than 2% in midday trading.

"The portfolio has been underperforming the prestige beauty market for over ten years, and this diverged further in the most recent quarter. We assume that the current high growth rates for the category normalize – an increasingly common phrase across the US consumer industry," analyst Chris Pitcher said. "Over the coming quarters this, combined with an improvement in Estée Lauder's own performance, should help close the gap, although not fully."

— Brian Evans

Schwab shares drop as client assets decline in August

Shares of Charles Schwab fell nearly 4% Friday after the company reported a decline in client assets last month.

The financial institution said average interest-earning assets in August were down 23% from the year-ago period to $449.5 billion and were down 4% from July. Total client assets came to $8.09 trillion as of the end of August, up 14% from a year ago but down 2% from the previous month.

— Yun Li

Chip equipment stocks fall as Taiwan Semiconductor reportedly asks suppliers to delay deliveries

Some chipmaker stocks slumped on Friday following a Reuters report that Taiwan Semiconductor Manufacturing is asking suppliers to delay deliveries, citing customer demand fears.

Taiwan Semiconductor shares fell nearly 2% on the news. Shares of ASML Holding, KLA Corporation, Lam Research and Applied Materials dropped more than 3% each.

Other semiconductor names and customers of Taiwan Semiconductor were also lower during morning trading. Advanced Micro Devices and Nvidia lost 4% and 2.3%, respectively.

— Samantha Subin

Auto stocks targeted by UAW strikes trade higher Friday morning

Automotive stocks tied to companies now facing employee strikes traded higher in early trading Friday.

Thousands of United Auto Workers went on strike at three key assembly plants of General Motors, Ford and Stellantis. About 12,700 workers walked off the job, the union said, after the automakers failed to reach a deal with UAW by the Thursday night deadline.

General Motors rose about 2% in Friday morning trading, while Ford and Stellantis each rose about 1%.

— Alex Harring, Lisa Kailai Han

Inflation outlook tumbles to lowest since early 2021, survey shows

The inflation outlook for one year from now fell to its lowest level in more than 2½ years, according to a widely followed sentiment gauge released Friday.

The University of Michigan's consumer sentiment survey showed one-year inflation expectations plunged to 3.1% in September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, tied for its lowest since December 2020.

However, the overall sentiment gauge declined to 67.7, down from 69.5 in August and below the Dow Jones estimate for 69.2.

—Jeff Cox

HSBC initiates buy ratings on Trane, Deere and Waste Management

Trane Technologies, Deere and Waste Management are three "highly attractive" industrial names that are set to win as the world moves towards a greener future, according to HSBC.

The firm initiated coverage on the three stocks with a buy rating, setting the price targets for Trane, Deere and Waste Management respectively at $256, $486 and $192. All three stocks were higher by less than 1% in midday trading.

"We see attractive growth driven by energy transition themes and regulatory support in the context of ESG-related initiatives, with upside to valuations," analyst Wesley Brooks wrote. "[The three companies] also have high market shares of 20- 60% in their respective sectors, making them instrumental enablers and key beneficiaries of what we see as attractive and long-term growth drivers."

— Lisa Kailai Han

Stocks open lower Friday

The major averages were lower at the open Friday.

The Dow Jones Industrial Average fell 54 points, or 0.16%. S&P 500 declined by 0.34% and Nasdaq Composite were off 0.29%.

— Sarah Min

Industrial production beats estimate for August

Output at U.S. factories was stronger than expected in August, the Federal Reserve reported Friday.

Industrial production, a measure of volume in manufacturing, mining, utilities and related sectors, rose 0.4% on the month, down from 0.7% in July but better than the 0.2% Dow Jones estimate. On a year-over-year basis, production increased 0.2%.

Capacity utilization, a gauge of potential output, totaled 79.7%, better than the 79.3% estimate and up from 79.5% in July.

—Jeff Cox

Stocks making the biggest moves before the bell: Arm Holdings, Adobe and more

These are the stocks moving the most in premarket trading:

Arm Holdings — Shares of the semiconductor and software stock gained 5.4% premarket after its rally on Thursday, when the company made its Nasdaq debut through an initial public offering and jumped nearly 25%.

Adobe — Shares fell 3.4% on the back of the company's fiscal third-quarter earnings report Thursday. Earnings and revenue at the PhotoShop and Acrobat maker beat analysts' estimates and forward guidance matched Street projections.

General Motors, Ford, Stellantis — GM and Ford fell less than 1% and Stellantis rose less than 1% after the United Auto Workers went on strike Thursday night.

Read the full list of stocks moving here.

— Lisa Kailai Han

Import costs rise at fastest pace in more than a year

Prices for imported goods surged to their highest monthly gain since May 2022, the U.S. Department of Labor reported Friday.

Import costs increased 0.5% on the month, higher than the Dow Jones estimate for 0.3% and above the 0.1% gain in July. Fuel prices rose 6.7%, the biggest gain since March 2022, driving a good portion of the increase.

Export prices were up considerably, rising 1.3%, also the biggest upward move since May 2022.

Even with the sharp increase, import prices were down 3% from a year ago while exports fell 5.5%.

—Jeff Cox

Oil prices notch 2023 highs

Oil prices hit highs not seen this year on Friday.

West Texas International crude reached a price of $91.15. That's the highest since Nov. 8, 2022, when the price hit $92.17.

Brent crude went for as much as $94.63. That marks its highest price since Nov. 16, 2022, when the commodity reached $94.79.

Both are on pace to finish the week up more than 3%. If those gains hold through the day, it will mark the third straight positive week for both.

— Alex Harring, Gina Francolla

New York manufacturing gauge tops expectations

Manufacturing activity in the New York area improved more than expected in September, according to a Federal Reserve report Friday.

The Empire State Manufacturing Survey, tabulated by the New York Fed, rose to 1.9, an increase of 21 points from July and better than the Dow Jones consensus for -10. The gauge measures the difference between companies reporting expansion against contraction, so the reading indicates a barely growing sector though better than a month ago.

Still, major improvements came in general business conditions, new orders and shipments, each of which improved by more than 20 points. On the inflation front, the prices paid and received indexes rose while employment was narrowly lower.

—Jeff Cox

Needham initiates coverage of Arm hold, cites 'full' valuation

Needham says Arm Holdings stock may already be fully valued a day after going public.

The firm initiated coverage of Arm stock on Thursday with a hold rating.

"In new growth areas, however, not only do viable alternatives to Arm exist, but ecosystem control often resides in the hands of others," analyst Charles Shi said. "We think Arm can grow by capturing greater value from smartphones, but not enough to support upside from the stock's IPO valuation."

Shares added 4.5% in premarket trading.

CNBC Pro subscribers can read the full story here.

— Brian Evans

UAW launches strike against three key factories

Auto workers went on strike Friday morning, shuttering some operations for Ford, GM and Stellantis.

After failing to reach a deal with management, the United Auto Workers targeted three key facilities for the companies: a GM plant in Wentzville, Missouri; Ford's Wayne, Michigan operation, and a Stellantis Jeep Wrangler and Gladiator operation in Toledo Ohio.

"We're going to be out here until we get our share of economic justice. And it doesn't matter how long it takes," UAW President Shawn Fain said.

Some 12,700 workers walked out of the three plants that make highly profitable vehicles for the automakers.

—Jeff Cox

Oil prices rally to 10-month high following better-than-expected China data

Oil prices rose to 10-month highs on the back of stronger-than-expected August data on Chinese retail sales and industrial production.

Global benchmark Brent traded 0.92% higher at $94.56 a barrel, while the U.S. West Texas Intermediate futures stood 1.02% higher at $91.08 per barrel.

China's retail sales grew 4.6% compared to a year ago, better than expectations of a 3% growth forecast by a Reuters poll. Similarly, industrial production grew by 4.5% in August from a year ago, also better than the 3.9% forecast.

— Lee Ying Shan

YG shares tumble 9% after Blackpink's Lisa reportedly rejects contract renewal offer

Shares of K-pop agency YG Entertainment tumbled almost 9% after South Korean media reported that Blackpink member Lisa has rejected a contract renewal offer from the agency.

The stock tumble is YG's largest one-day drop since Sept. 28, 2022.

A report from South Korean news outlet Star News says the Thailand-born member of the 4-person girl band has turned down two offers from YG. The size of the contract was reportedly worth 50 billion South Korean won ($37.6 million).

Read the full story here.

— Lim Hui Jie

China August retail sales and factory output beat expectations, but fixed asset investment misses

China's retail sales and industrial production picked up in August, with better-than-expected growth, according to National Bureau of Statistics data released Friday.

Retail sales grew by 4.6% in August from a year ago, beating expectations for 3% growth forecast by a Reuters poll. The increase was also faster than the 2.5% year-on-year pace in July.

Industrial production also rose by 4.5% in August from a year ago, better than the 3.9% forecast and faster than the 3.7% increase reported for July.

Fixed asset investment, however, grew by 3.2% year-on-year in August on a year-to-date basis. That missed expectations for a 3.3% increase and was slower than the 3.4% pace reported as of July.

Read the full story here.

— Evelyn Cheng

Energy's hot month

U.S. crude oil is having a hot September, and the energy sector is along for the ride.

West Texas Intermediate crude is up more than 8% for the month. The commodity's surge has also put the energy sector of the S&P 500 on track for a nearly 5% gain in September. U.S. crude also crossed the $90 per barrel threshold Thursday, a first since November 2022.

Valero Energy is the leader in sector, up about 12.4% this month. That would be its biggest monthly gain in 2023.

Marathon Petroleum and Halliburton each follow with a 9% advance this month. A handful of names are at the bottom of the pile and are negative in September, including APA, off by nearly 2%, and EQT, down 1.5%.

-Jason Gewirtz, Darla Mercado

Seven out of 10 IPOs year to date are trading below their debut price

Arm Holdings rushed out of the gates as the stock popped nearly 25% when it debuted Thursday, but many new IPOs are seeing a rough go in 2023.

Seventy percent – or 51 out of 73 of this year's initial public offerings – are trading below their IPO price. Many of these names are quite small in terms of market cap, with a couple of notable exceptions: Kenvue and Enlight Renewable Energy are both trading below their IPO price. Kenvue, which has been spun out of Johnson & Johnson, is off just over 1% from its IPO price, while Enlight is down more than 9%.

Arm's debut on Thursday, in which it ended the session with a market cap of over $65 billion, is the biggest IPO since electric vehicle maker Rivian debuted on Nov. 10, 2021. Arm had a deal size of $4.87 billion, compared to Rivian's $11.93 billion.

-Darla Mercado, Gina Francolla

Consumer discretionary sector leads weekly gains for S&P 500

The S&P 500 is heading for a weekly gain of about 1.1%, and the consumer discretionary sector is the big winner week to date.

The consumer discretionary sector is up more than 3.6% for the week through Thursday.

Stocks that have jumped the most within the sector include Tesla, which is up more than 11% through Thursday's close. Shares of the electric vehicle maker leapt 10% on Monday alone, following a bullish call from Morgan Stanley.

Another huge performer in consumer discretionary this week is Amazon, which leapt to a fresh 52-week high Thursday. The e-commerce giant rolled out a generative artificial intelligence tool for sellers on Wednesday. That same day, Morgan Stanley issued a note saying shares could see additional upside of up to 60% in the approaching years.

Amazon is up 4.7% this week.

— Darla Mercado, Chris Hayes

Stocks making the biggest moves after hours

These are the stocks making the biggest moves in after-hours trading:

Lennar — Shares slid 0.5% even after the home construction firm posted third-quarter earnings results that topped Wall Street's expectations. Lennar posted earnings of $3.87 per share, versus the $3.51 expected by analysts polled by LSEG. Revenues came in at $8.73 billion, ahead of the $8.45 billion expected by analysts.

Adobe — Adobe shares lost nearly 2% in extended trading despite posting better-than-expected earnings results. For the fourth quarter, Adobe said it expects earnings to range between $4.10 and $4.15 per share, ahead of the $4.06 expected by LSEG. Revenues are expected to come in roughly in line with expectations.

— Lisa Kailai Han, Samantha Subin

Stock futures open little changed

Stock futures opened flat on Thursday evening.

Futures connected to the Dow Jones Industrial Average added 28 points, or 0.08%. S&P 500 futures and Nasdaq-100 futures hovered near the flatline.

— Samantha Subin