DOW - Dead cat rebound?

Dow

11,444.61

+60.93

+0.54%

By: JeeYeon Park

CNBC.com Writer

Stock finished mixed after a wild session Friday, with the Dow gyrating more than 400 points throughout the day, as investors remained jittery over the state of the global economy.

The Dow Jones Industrial Average finished higher for the day, after swinging more than 400 points and crossing the flatline 16 times throughout the session. The index was up 172 points at session high and down 245 points at its low.


The S&P 500 and the Nasdaq both ended lower.

For the week, the Dow tumbled 5.75 percent, logging its steepest weekly decline since Mar. 2009. Kraft [KFT 34.87 1.09 (+3.23%) ] was the only blue-chip stock to finish in the black for the week, while Bank of America [BAC 8.17 -0.66 (-7.47%) ] sank more than 15 percent.


The S&P plunged 7.18 percent, while the Nasdaq plummeted 8.13 percent, posting their biggest fall since Nov. 2008.




All three major averages are still in negative territory for the year. In addition, all three indexes are also trading in "correction territory," defined by a drop of 10 percent from its peak from their intradays high in Apr. 29. This comes after stocks plunged sharply on Thursday, with the Dow down more than 500 points, in its worst one-day drop since December 2008.



All 10 S&P sectors finished in the red for the week, led by energy, which tumbled more than 10 percent.



The CBOE Volatility Index, widely considered the best gauge of fear in the market, finished above 32.





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Volume was at the heaviest level since the day after the Flash Crash in May 2010 with the consolidated tape of the NYSE at 8.18 billion shares, while 2.25 billion shares changed hands on the floor.

“One of the things that concern me is that this is a very sensitive market,” Peter Costa, president of Empire Executions told CNBC. “When news comes out, the market will selloff or trade up in a hurry and I don’t think I’ve seen a market this skittish in a very long time.”

Stocks rallied briefly in the afternoon after Italy said it plans to speed up its fiscal consolidation timetable and introduce a balanced-budget amendment in its constitution, according to Italian Prime Minister Berlusconi.

The announcement followed earlier media accounts that the ECB had agreed to buy Italian and Spanish bonds if key structural reforms were brought forward.

Traders on Thursday had been disappointed that the ECB were buying Portuguese and Irish bonds instead of Italian and Spanish debt.