The Dow Jones Industrial Average pulled back from an abyss Friday, plunging 826 points less than an hour after opening, before rallying after 3:00 p.m. to end the day down only 0.98%, or 255.68 points, to 25,865.59.
The S&P 500 slid 1.7%, or 51.57, to 2,972.37. The NASDAQ Composite lost 1.8%, or 162.98, to 8,575.62. All three major indices, however, still managed small weekly gains after a bumpy week where the Dow swung 1,000 points or higher twice within three days.
The Dow was up 1.7% on the week, the S&P 500 stood 0.6% higher and the NASDAQ was up 0.1%. All three indices remain in correction territory and are 10% down from their recent peaks a few weeks ago.
Energy was Friday's worst-performing sector, down 5.6%, as oil prices plunged more than 10% to multi-year lows after OPEC's allies led by Russia rejected additional production cuts amounting to 1.5 million barrels per day. Surprisingly, airline stocks rallied, albeit slightly, providing the broad market some cushion. United Airlines recovered 2% while Delta Air Lines rose 1%.
Friday's selloff again triggered a rush to Treasurys. The benchmark 10-year Treasury yield tumbled below 0.7% for the first time ever and its lowest level yet. Analysts said investors continue parking their money in safer assets such as Treasurys and haven-asset gold amid fears the COVID-19 outbreak will plunge the U.S. economy into an economic recession and keep disrupting already battered global supply chains. Gold is on track for its best week since 2008.
"Markets have not done well on Fridays because we are all expecting the situation to worsen over the weekend," said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management.
Binky Chadha, Deutsche Bank's chief equity strategist, said the magnitude of the sell-off in the S&P 500 has further to go.
"In terms of duration, just two weeks in, it is much too early to declare this episode as being done," he said.
Friday's renewed selloff was mercifully less painful than Thursday's when the Dow plummeted 3.58% to 26,121.28 -- a 969.58 point loss. The Dow tanked to a session low of 1,150. All 30 stocks on the Dow finished in the red with airline stocks taking a particularly hard hit. The Dow Jones Transportation Average fell into the bear market territory.
The benchmark S&P 500 took its cue from the Dow, plunging 3.3%, or 106.18, to 3,023.94. The NASDAQ fell 3.1%, or 279.49, to 8,738.60. All 11 S&P sectors finished the day in the red. Stocks plunged sharply lower with the 10-year Treasury yield falling to an all-time low below 0.9%.
The pared losses on Friday might have had something to do with the encouraging U.S. jobs report. The federal government said the economy added 273,000 jobs in February, beating expectations of 175,000 new jobs. The unemployment rate fell to 3.5%, matching its lowest level in more than 50 years.
