Dow dips below 8000

The Dow Jones Industrial Average plunged nearly 700 points in the first minutes of trade to trade below the 8,000 mark for the first time since April 1, 2003, before bouncing back and erasing two thirds of its opening losses. The Dow industrial last traded down 247 points, or 3%, at 8,323. It earlier fell 697 points to a low of 7,882. The S&P 500 index ($SPX) was down 24 points, or 2.3%, at 889, while the Nasdaq Composite (COMP) fell 21 points, or 1.3%, to 1,625.

In the first five minutes of trade Friday the Dow plunged 697 points, falling below 7,900 to the lowest point since March 17, 2003. The Nasdaq and S&P also hit more than five-year lows. But stocks recovered abruptly, with the Dow erasing losses. The afternoon saw the Dow make violent swings back and forth across the breakeven line, toppling as much as 600 points and rising 322 points.

The Dow has now tumbled for eight consecutive sessions, losing nearly 2,400 points, or 22%, as panicked investors ditched stocks across the board.

For the week, the Dow fell just over 1,874 points, or 18%, its worst weekly decline ever on both a point and percentage basis. Wall Street lost roughly $2.4 trillion in market value during the week, according to losses in the Dow Jones Wilshire 5000, the broadest measure of the market.