U.S. stocks fell further Friday as the financial sector continued to struggle. Bank stocks were among the biggest decliners, weighed down by worries about the health of the financial system. Uncertainty about the government’s plans to rescue the financial sector also added to the negative sentiment.

Impact on Major Indexes

The Dow Jones Industrial Average fell by 1.5%, the S&P 500 declined by 2%, and the Nasdaq Composite decreased by 2.8%. The losses were widespread, with most sectors showing declines. Trading volume was moderate.

Key Factors Influencing the Market

• Financial Sector Woes: Ongoing concerns about bank solvency and government intervention plans.
• Economic Data: Weak economic data releases added to the negative outlook.
• Investor Sentiment: Overall, market sentiment remains bearish due to economic uncertainties.

Looking Ahead

Analysts expect continued volatility in the market until there is greater clarity on the economic outlook and the government’s financial rescue plans. Investors are advised to proceed with caution.