US stocks closed sharply lower Friday on an incessant stream of bad news in financials and technology that bled over into the rest of the market.
Major indexes posted substantial losses amid disappointing economic reports and word of further credit-related turmoil among banking giants Wachovia and Capital One. By day's end, however, financials were one of the few sectors that had reversed its gains.
For the day, the Dow Jones industrial average was down 223.55 points, or 1.69 percent, at 13,042.74. The Standard & Poor's 500 Index was down 21.07 points, or 1.43 percent, at 1,453.70. The Nasdaq Composite Index lost 68.06 points, or 2.52 percent, to 2,627.94.
The rabid selloff began the bell and lasted throughout the day, as some of the biggest names on the Dow and Nasdaq posted substantial losses. The Nasdaq, which recorded sharp declines in the two previous sessions, was down 5.7 percent for the week and on track for its second worst week of the year.
"The market is just not happy with some of the news coming out Wachovia. We keep getting this data coming out from these thanks that's worse than expected," said Scott Martin of Astor Asset Management. "The market is finding out that things are a lot worse than what we were told and what we thought."