US markets continue decline on Friday

US stocks continued to fall Friday amid increasing investor concern about the effect of the global coronavirus outbreak.

The Dow Jones Industrial Average fell more than 1,000 points in early trading before mounting a partial comeback. Bonds fell. The price of oil declined. But Nasdaq rose less than a point.

The Dow Jones Industrial Average fell 357.28 points, or 1.39 percent, and closed at 25,409.36. The blue-chip index had been down as much as 1,000 points in early trading Friday.

The S&P 500 fell 24.54 points or 0.82 percent to 2,954.22. Nasdaq rose less than a point, or 0.01 percent and closed at 8,567.37.

Losses this week have wiped out about $3.4 trillion in value.

Investors fear the global spread of the coronavirus will disrupt supply chains, cut production and depress sales. This would reduce company earnings and make current stock prices too expensive for many investors.

On Thursday, the Dow Jones Industrial Average plunged 1,190.95 points, creating the largest percentage drop in US markets since August 2011.

On Friday, 702 stocks advanced and 2,325 fell. Thirty-seven remained unchanged.

A total of 935 stocks hit 52-week lows.

Investors sought safety in government bonds and sent the 10-year US Treasury yields to all-time lows. On Friday, the yield fell to 1.15 percent, an all-time low.

Oil, a proxy for the overall strength of the economy because transportation is key to supply chains, manufacturing, distribution and sales, is headed for its worst performance in four years.

Brent crude, a worldwide benchmark, briefly fell below $50 a barrel for the first time in 2.5 years in mid-day trading Thursday, but closed at $50.37. The decline continued Friday and the price fell to $49.88.

There is some chatter that the US Federal Reserve will cut interest rates to stimulate the economy when it meets March 17-18. In 2019, the Fed cut rates three times by a quarter point each to 1.50 – 1.75 percent. Lower rates reduce the cost of commercial borrowing and consumer debt. A cut would be intended to encourage investment and spending.

The Fed doesn't comment on possible action prior to its meeting. But in a statement released Friday, Chairman Jerome Powell appeared to say the Fed will cut interest rates if needed:

"The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy."