STORY: Wall Street ended mixed on Friday but suffered its biggest weekly percentage decline in two years, as investors wrestled with the growing likelihood of a recession after the U.S. Federal Reserve and other central banks hiked interest rates this week to stamp out stubbornly high inflation.

The Dow fell fractionally on Friday. The S&P 500 posted a modest gain, while the Nasdaq rose nearly one and a half percent. But each of the three indexes fell for the third week in a row.

Adam Coons is a portfolio manager for Winthrop Capital Management.

"I think what we're seeing today is, just after a very volatile week surrounded by the Federal Reserve's 75-basis-point hike in rates, is that the market's just kind of taking a breath today. We're ahead of a holiday weekend, a three-day weekend, so I think you're just seeing investors just kind of trying to take a pause here. [WHITE FLASH] What we think is in the back half of the year, you're going to see the Fed begin to take their foot off the accelerator of tightening monetary policy, which then will fuel the markets once again."

Economic data on Friday showed production at U.S. factories fell unexpectedly in May - the latest indication that economic activity was on the decline.

As for individual stocks, battered megacaps recovered somewhat Friday, with Apple, Tesla and Amazon posting gains.

Airline stocks also bounced back after a bruising two weeks.

But energy stocks, the year's best performing sector, plummeted Friday with Exxon Mobil, ConocoPhillips and Devon Energy all posting big losses on concerns a slowing global economy could sap demand for oil.