Stocks struggled to stabilize much of the day as investors sent prices climbing, then slumping in unsteady trading a day after the market entered its first correction in two years.
On Friday, the Hang Seng closed with a 9.5 per cent drop for the week - its worst weekly performance in nearly a decade, while Japan's Topix ended 7 per cent - its biggest weekly drop in two years.
Although the weekly losses came close to the scary days of the crisis, the market and economy are in vastly better shape than in 2008.
Major indexes in Asia and Europe also fell following Monday's 1,175-point drop in the.
It's the second time this week it has fallen over 1,000 points. The broader Standard & Poor's 500-stock index gave up early gains and slid into negative territory - before clawing back into the black.
The Dow drop on Monday was its biggest-ever in terms of points, but the index only declined by 4.6 per cent.
"Volatility is here is to continue for a few days perhaps a few weeks longer", said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis. The S&P 500 closed at 2,619.55 for a gain of 38.55 points or 1.49%.
Fears about inflation and soaring bond yields drove the Dow down about 1,300 points on the week.
The Nasdaq gained 97 points, or 1.44 percent, to close at 6,874.
The Canadian dollar was little changed against its USA counterpart on Friday at 79.46 United States cents, rebounding from an earlier six-week low, as gains for USA stocks offset the biggest decline in domestic jobs in nine years. The yield on the 10-year Treasury note rose to 2.74 percent from 2.71 percent.
First quarter sales dropped to US$3.07bn, down from US$3.32bn, in the three months to December as film and theatre went down by 28% and 48% respectively, due to the number and mix of current quarter releases. Chipmaker Nvidia (NVDA) added $14.56, or 6.7 percent, to $232.08.
Expedia slumped after its latest earnings fell short of analysts' expectations.
Perhaps investors thought the Fed would not tighten as much in 2018 and 2019 and are shifting their stance. Its shares sank $19.03, or 15.5 percent, to $104.
Earlier, Asian markets also saw steep losses as inflation worries gripped financial markets, sending U.S. stock futures sinking further into the red after Wall Street suffered its biggest decline since 2011.
Benchmark U.S. crude oil lost 64 cents, or 1 percent, to $61.15 a barrel in NY.
Energy stocks were down 0.05 per cent as oil prices dipped, while materials stocks fell 1.1 per cent.
Markets around the world also reeled Friday from the sell-off on Wall Street on Thursday. Silver rose 10 cents, or 0.6 percent, to $16.34 an ounce, and copper fell a penny to $3.08 a pound.
USA stocks started to tumble last week after the Labor Department said workers' wages grew at a fast rate in January. Those include worries about a potential rise in USA inflation or interest rates and budget disputes in Washington.
Financial analysts regard corrections as a normal event but say the latest unusually abrupt plunge might have been triggered by a combination of events that rattled investors. Those include worries about a potential rise in US inflation or interest rates and budget disputes in Washington.