The Nasdaq dropped more than 1 percent on Friday, continuing a recent bout of weakness as the tech-heavy index was pressured by weakness in semiconductor stocks. The S&P 500 posted a modest decline, with a retreat in technology and energy shares somewhat offset by strength in consumer staples, while the Dow posted a modest gain. All three indexes remained on track for a sharp drop on the week, which would also be their third straight weekly loss.
The downturn has come on growing concerns over the pace of economic growth and the impact that could have on corporate earnings. Trading was volatile, with major indexes fluctuating between gains and losses in the wake of a massive selloff in Thursday's session. The CBOE Volatility index rose 2.5 percent to 19.23 and earlier rose to its highest level since December 2012.
With the day's decline, the S&P 500 is down 4.3 percent from a record close hit last month. Microchip shares fell 13 percent to $39.49 while Intel Corp was off 4.7 percent at $32.05. Texas Instruments lost 7.4 percent to $42.61. At 11:13 am EDT (1513 GMT), the Dow Jones industrial average rose 7.19 points, or 0.04 percent, to 16,666.44, the S&P 500 lost 6.79 points, or 0.35 percent, to 1,921.42 and the Nasdaq Composite dropped 53.88 points, or 1.23 percent, to 4,324.46. The Dow was lifted by strength in Coca-Cola Co, which was up 1.8 percent at $44.64, and Wal-Mart Stores Inc, which rose 1.4 percent to $78.94.