U.S. stocks dropped Friday, capping their worst week since the height of the financial crisis as investors remained jittery about the direction of the economy despite hopes for government and central bank action to combat the coronavirus pandemic.
The Dow Jones industrial average tumbled 913.21 points to close at 19,173.98, falling back below 20,000 after wild price swings over the past week. The Standard & Poorís 500 fell 4.3% to end at 2,304.92. The Nasdaq Composite lost 3.8% to close at 6,879.52.
For the week, the Dow dropped more than 17%, its worst one-week percentage drop since October 2008.
Stocks erased early gains after Gov. Andrew Cuomo of New York, a hotspot for coronavirus cases, banned all non-essential travel, mandated non-essential personnel stay at home and required all businesses to shutter if they do not fit specific criteria.
Despite the latest bout of selling, hopes remain that there will be progress in finding virus treatments.
"The one glimmer of light in this dark period is that Asia and its supply chain is recovering quicker than expected," says Daniel Ives, an analyst at Wedbush Securities. "Even though consumers and investors across the U.S. and Europe are in lockdown, we are seeing signs that the global supply chain is starting to normalize over the longer term."
Improvements in the flow of goods and materials will help drive growth across tech industries, including chip makers, software firms and companies developing cellular technology known as 5G, Ives added.
On Friday, workplace-software maker Slack, software company DocuSign and Zoom Video Communications all jumped at least 5%.