The Dow Jones Industrial Average tumbled 240.60 points, or 2.16 percent to finish at 10,913.38, led by Hewlett-Packard .
For the quarter, BofA was the worst performer on the blue-chip index, tanking more than 44 percent, while McDonald's was the biggest gainer, adding almost 4 percent.
The S&P 500 fell 28.98 points, or 2.5 percent to end at 1,131.42, while the Nasdaq declined 65.36 points, or 2.63 percent to finish at 2,415.40.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, finished near 43.
For the week, the Dow logged a gain of 1.32 percent, the S&P slipped 0.44 percent, while the Nasdaq dropped 2.73 percent.
Among the key S&P sectors, materials led the laggards for the week, while telecom gained. And for the quarter, utilities eked out a gain while financials and materials plummeted.
“When you took away the Fed protection, people feel that the Fed’s not supporting them so they’re not going to take risks,” said Joe Saluzzi, co-manager of trading at Themis Trading. “There’s a lot of hesitation—we saw quick bounces after the economic numbers.”
European shares ended lower, led by weakness in banks. DeutscheBank and Barclays declined.
Major banks in the U.S. were also trading lower, such as Morgan Stanley and Citigroup . Goldman Sachs also tumbled after Mediobanca Securities cut its price target on the financial giant to $106 from $120.
Billionaire investor Warren Buffett said his firm Berkshire Hathaway has started share buybacks, but the repurchases will not stop the company from making further acquisitions or spending on infrastructure. Buffett also reiterated his support for Bank of America .