NEW YORK (TheStreet) -- It's Friday 13th so it was fitting that investors got a scare when they saw how markets were trading. After rallying over 1% a day earlier, the S&P 500 and Dow Jones Industrial Average plummeted, though it pared some of its losses by the market close. 

The Federal Reserve has been a sore point for Wall Street all week. Stocks have been ravaged as investors processed the likelihood the Fed would remove its "patient" language from next week's announcement, a move which could signal a June or September rate hike.

So this selloff isn't over yet, one analyst predicts.

"You're going to have this 5-10% pullback over the period from late February into June as investors get nervous about what's going on with the Fed," said Phil Orlando, chief equity strategist at Federated Investments.

But after a turbulent couple of months, Orlando thinks stocks will bounce back strongly the latter half of the year.

Once "we get the first hike and [Chair Janet] Yellen explains what she's doing, investors are going to say, 'If the Fed is raising interest rates for the first time in nine years, that must mean that they think the economy is doing better, it can walk on its own without interest rates being at zero'," he continued. "At that point we think the market kicks off into a rally and we end up having a nice fourth-quarter, year-end rally."

The pullback continued on Friday though, with the S&P 500 closing down 0.61%, the Dow sliding 0.81%, and the Nasdaq falling 0.44%. Since hitting fresh record highs nearly two weeks ago, the S&P 500 has fallen 3% and the Dow has tumbled 2.9%. 

Oil prices were another major concern Friday after the International Energy Agency warned that a recovery remained fragile as production in the U.S. shows little signs of meaningfully slowing down. West Texas Intermediate crude plummeted 4.2% to $45.06 a barrel.

"Behind the facade of stability, the rebalancing triggered by the price collapse has yet to run its course, and it might be overly optimistic to expect it to proceed smoothly," the energy watchdog said in its monthly oil report.

Large-cap oilers Exxon Mobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A) and BP (BP) declined, while Energy Select Sector SPDR ETF (XLE) tumbled 0.37%.

Consumer sentiment in March fell to its worst level since November, down to 91.2 from 95.4 in February, according to the University of Michigan's monthly index. Economists had expected a reading of 94.8.

Producer prices remained weak in February with prices down 0.5% on top of a 0.8% decline in January. Economists had expected an increase of 0.3%. Excluding volatile items such as food and energy, the index remained down 0.5%, compared to estimates of a 0.1% gain.

"The last time inflation pressures were this weak was more than five years ago," said Sterne Agee chief economist Lindsey Piegza. "The exuberance from February's employment report has certainly been undermined with a bout of deflation now at the forefront of monetary policy makers' concerns."

The Fed's two-day meeting and press conference midafternoon Wednesday will take center stage next week, but there are several other key economic data points for investors to digest. On Monday, February industrial production will give a glimpse into how the manufacturing sector weathered a harsh winter. 

The housing sector will be under the microscope on Tuesday with February building permits and housing starts data scheduled for release before the bell. The Energy Information Administration will release weekly crude inventories on Wednesday morning. And on Thursday, weekly jobless claims will be released premarket, while the Philadelphia Fed Business Outlook Survey is due for midmorning.