US stocks dropped sharply on Friday as major market indices appeared headed for one of their worst weeks in history amid fears of a widening global credit crunch and recession, according to DPA. The Dow Jones Industrial Average was down more than 4 per cent by early afternoon in a wild trading day on Wall Street. The Dow plunged nearly 700 points to below 8,000 within minutes of opening, but had roared all the way to its starting point about 30 minutes later amid widespread uncertainty over the state of the US economy. Both the Dow and Standard & Poor's 500 index were heading for their worst weekly losses in history. The S&P was down some 5 per cent Friday and 21 per cent for the week. "At this point, investors are just focusing on getting through the day," Alan Gayle, a strategist at Ridgeworth Investments, told Bloomberg News. "The markets are being driven by emotion and rumour." Financial, energy and retail stocks led the retreat. Retail giant Macy's Inc dropped as much as 19 per cent on a poor profit forecast, while Exxon Mobil Corp was down 12 per cent as crude oil fell below 80 dollars per barrel in New York. Stocks around the world also plummeted Friday and some countries temporarily halted trading as US and global moves to shore up financial institutions were unable to reduce fears that a recession was on the horizon.
