The results of the "Brexit" referendum on Friday overshadowed all other events that transpired earlier in the week.
After weeks of worry over the outcome, the United Kingdom voted for an exit from the European Union by a slim margin. The results blindsided global markets on Friday after days of growing confidence the U.K. would opt to remain in the E.U.
The results could have major political and economic implications for the region over the next two years and beyond as the country negotiates how exactly it will separate from the 28-nation bloc.
Wall Street grew worried volatility could pervade markets in coming weeks and months as the effects of the 'Brexit' continue to be felt. Those worries sent U.S. equities sharply lower on Friday and pulled markets into the red for the week.
Since Monday, the S&P 500 fell 1.6%, the Dow Jones Industrial Average dropped 1.6%, and the Nasdaq slid 1.9%.
"We believe that 'Brexit' is a macro shock to the global economy and the ramifications to the U.S. are unambiguously negative," TD Securities wrote in a note. "We expect the (Federal Reserve) to take the tightening in financial conditions into account and that should push the trajectory of hikes further out."
The 'Brexit' curveball reduced the chances of another rate hike in the near term. A July rate hike has a probability of 5%, a September hike 11%, and a November hike 11%, according to CME Group fed funds futures.
The probability of a near-term interest rate hike were already lowered earlier in the week as Fed Chair Janet Yellen continued to sound dovish. Similar to comments made after the Fed's June meeting, Yellen noted Wednesday that the U.S. economy was still growing, though it had seen recent weakness.
Yellen also said the disappointing headline jobs number in May was likely a result of residual economic weakness from earlier in the year in testimony to the House Financial Services Committee on Wednesday. A "cautious approach" to rates "remains appropriate," Yellen told the Senate Banking Committee in Washington during a separate testimony on Tuesday.
In economic news, durable goods order in the U.S. declined at a far-sharper pace than expected, driven by a steep decline in defense aircraft demand. Orders for long-lasting factory goods have been under pressure as business investment weakens, a factor which will likely worsen as the 'Brexit' results fuel uncertainty.
Manufacturing in June appeared to rebound from a weak May, according to a flash reading of Markit's manufacturing PMI. The measure rose to a reading of 51.4 in June from 50.7 in May, the weakest level since September 2009. June activity was at its best in three months.
New home sales slowed in May after a breakneck pace of growth in April, according to the Commerce Department. Existing-home sales in May rising to their highest level since February 2007 and prices notching their best level ever. Tighter inventory, higher demand and lower interest rates have boosted activity in the sector.
In earnings news, BlackBerry (BBRY) reported a wider loss and another decline in sales in its first quarter. Revenue fell nearly 40%, though came in above estimates.
Tesla Motors (TSLA - Get Report) made a surprise stock offer of up to $2.8 billion for struggling solar energy company SolarCity (SCTY) in a move to combine CEO and entrepreneur Elon Musk's companies. The automaker offered $26.50 to $28.50 a share for SolarCity, a 21% premium to Tuesday's close.
Tesla's acquisition offer is "shameful," Kynikos Associates President Jim Chanos told CNBC's Scott Wapner. "The brazen Tesla bailout of SolarCity is a shameful example of corporate governance at its worst."
See full Brexit coverage here.