UPDATE: Prices have been updated as of market close.

As the market takes a hit Friday after comments from the Federal Reserve suggesting that more interest rate increases are on the horizon, telecom stocks are among the worst hit.

The S&P 500 Telecommunication Services Sector Index finished down about 3.42% Friday, with losses led by Frontier Communications (FTR) - Get Report , AT&T(T) - Get Report and Verizon Communications(VZ) - Get Report . Frontier shares closed 4.4% lower, AT&T shares are finished 3.6% lower and Verizon shares closed 3.3% lower.

Also within the index, Level 3 Communications (LVLT) is down 3.4% while CenturyLink(CTL) - Get Report is down 1.73% at the markets close.

The nosedive is taking place in a sector that has enjoyed a solid run as investors have rewarded high-dividend yields.

Federal Reserve Bank of Boston president Eric Rosengren suggested earlier Friday that a September rate hike was not totally off the table. Adding to market volatility were the European Central Bank's decision Wednesday to hold interest rate at zero as the financial body continues to face uncertainty about the effects of Brexit.

Outside the S&P 500 index, T-Mobile US(TMUS) - Get Report stock closed 4.43% lower and Sprint(S) - Get Report finished down 2.21%. Telephone & Data Systems(TDS) - Get Report is trading down 4.45%.