Stocks plunged on a dismal jobs report Friday. No jobs were added in the U.S. in August, the worst showing in 11 months. The hiring slowdown renewed fears that another recession could be on the way.
Treasury yields sank and gold jumped $48 an ounce as cash flowed into investments considered less risky than stocks. Big banks dropped on reports that the government was preparing to sue some of them over mortgage investments they sold that lost value when the housing market collapsed. The Federal Housing Finance Agency, the regulator of Fannie Mae and Freddie Mac, announced the lawsuit against 17 banks after the market closed.
The Dow Jones industrial average lost 253.31 points, or 2.2 percent, to close at 11,240.26.
The Standard & Poor's 500 index fell 30.45, or 2.5 percent, to 1,173.97.
The Nasdaq composite fell 65.71, or 2.6 percent, to 2,480.33.
For the week:
The Dow is down 44.28, or 0.4 percent.
The S&P 500 is down 2.83, or 0.2 percent.
The Nasdaq is up 0.48, or 0.02 percent.
For the year to date:
The Dow is down 337.25, or 2.9 percent.
The S&P 500 is down 83.67, or 6.7 percent.
The Nasdaq is down 172.54, or 6.5 percent.