Stocks sold off in volatile trading Friday as an encouraging jobs report fell to the back burner and the market remained jittery after Thursday's nauseating freefall.
The Dow ended down 139.89, or 1.3 percent, to close at 10,380.43. For the week, the Dow lost 630 points, or 5.7 percent, its worst weekly percentage drop since last March.
The Nasdaqlost 2.3 percent today, falling into correction territory: The tech-heavy index is now down more than 10 percent from its April 23 high.
All three major indexes are now lower for the year as investors worry about another shoe to drop as the European debt crisis worsens.
The CBOE volatility index, widely considered the best gauge of fear in the market, was above 41, nearly double of where it ended last week, at the closing bell.
Oil fell 13 percent this week to settle at $75.11, its worst week since December 2008. Gold closed out the week at $1,210, a new 2010 high, as investors flocked to the metal as a safe-haven play amid the market madness.
More than 2.4 billion shares changed hands on the New York Stocks Exchange, twice the daily average for a second straight day. More than 2 million of those were decliners.
Despite an encouraging sign on the jobs front — nonfarm payrolls jumped by 290,000 in April, the fastest pace in four years — investors unwound their recovery plays, selling off technology, industrial and consumer-discretionary stocks.
For the week, materials, industrials and energy were the worst performers.
Selling in techs accelerated today following news that Nokiais suing Apple over patent infringements.
Financials had started the day higher but ended sharply lower as investors tried to make sense of what happened yesterday and what it means going forward.
The market had been plodding along Thursday, worried about Greece and the spread of the European debt crisis. But as market pros were debating if this was the beginning of a correction, the riots in Greece exploded on live television and the bottom fell out of the market. Stocks went into a freefall, with the Dow down as much as 998.50 at one point, before recovering to end down just 350 points.
Investigators still don't know exactly what happened but today's buzz suggests computers were likely to blame— not human error.
One theory Thursday suggested a trader at Citigroupmay have mistyped a trade as billioninstead of million, triggering all kinds of computerized trades that are programmed to sell when a stock hits a certain level. But Citigroup said there was no basis to such rumors.
Some say the selloff was exacerbated by high-frequency tradersas several high-frequency trading firms stopped trading when the market was going haywire.
It's times like this that separate the men from the boys — and who needs to get back on the porch — and market veteran Art Hogan of Jefferies said he sees a buying opportunity.
"Last week, if you look at the 50-day moving average of the S&P — 93% of companies were trading above their 50-day moving average. But coming in this morning, that's only 28%. In the last June/July selloff, that bottomed out at 25%, so we’re getting a very strong buy signalin valuations and the multiples are very, very attractive," Hogan said on CNBC this morning.