Dow falls 1,000 points after Fed warning of coming economic difficulties

Stocks on Friday tumbled sharply throughout the day, ending with a 1,000-point loss on the Dow after pessimistic predictions from the head of the Federal Reserve.

The Dow, which opened at nearly 33,300, hit the ending bell at 32,284, dropping sharply around 10:30 and then continuing a steady decline throughout the day.

The NASDAQ, meanwhile, dropped just under 500 points, losing nearly 4% throughout daily trading. 

The drops came in response to a pessimistic forecast from Federal Reserve Chairman Jerome Powell, who said in his annual address at Jackson Hole, Wyo. that Fed efforts to tamp down inflation would likely generate economic pain in the near future. 

"While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses," he said.