Gloom returned on the Wall Street on Friday after grim economic data raised concerns that the recession will be longer and deeper than previously expected. A steep selloff of technology and retailer's shares also pulled market lower.

Friday was yet another session which was marked by huge volatility. Stocks traded with moderate losses for most part of the session. Major indexes managed to trim losses in the mid session with Dow Jones and S&P500 even making it to positive zone. However the market could not hold on to its gains and indexes finally succumbed to the selling pressure in last hour.

The Dow Jones Industrial Average fell 337.15 points, (-3.82%), to close at 8,498.10. The S&P500 dropped 37.97 points (-4.17%) to 873.97. The Nasdaq Composite plunged 79.85 points (-5%) to 1,516.85.

For the week, Dow lost 446.5 points or 4.99% while S&P500 was down 57.7 points or 6.2%. Nasdaq Composite being the worst hit, settled with a weekly loss of 130.55 or 7.92%.

A release by Department of Commerce on Friday showed retail sales declined by a record 2.8% in October as consumers cut back on spending due to mounting layoffs. This was the fourth straight monthly decline in the retail sales. Economists had forecast a drop of 2.3%.

Retailer Home Depot (NYSE: HD) fell $1.69 or 7.6% to $20.54. Wal-Mart (NYSE: WMT) gave off $2022 or 4.04% to $52.71. 

Shares of Abercrombie & Fitch Co. (NYSE: ANF) plunged $4.65 or 20.72% to $17.79 after announced its third-quarter earnings fell to $63.9 million, or 72 cents a share, from $117.6 million, or $1.29, in the same quarter in 2007. Revenue dropped 8% to $896.3 million from $973.9 million. Analysts on an average expected the company to earn 72 cents a share on revenue of $917.0 million.

J.C. Penney Co.'s (NYSE: JCP) slumped $2.01 or 10.43% to $17.27 after it said third-quarter net income declined to $124 million or 56 cents a share, from $261 million, or $1.17 a share in the corresponding quarter a year ago. Sales fell to $4.32 billion from $4.73 billion. The company also lowered its outlook for fourth quarter. Consensus expectations were for net earnings of 53 cents a share.

Shares of department store chain Kohl's (NYSE: KSS) and Nordstorm (NYSE: JWN) dropped 4.84% and 9.41% respectively. Late on Thursday, Kohl’s Corp said that its third quarter profit fell by 17% to $160.2 million or 52 cents a share from $194 million or 61 cents a share in the same quarter in 2007. Nordstrom Inc reported that its third quarter net income dropped by 57% to $71 million, or 33 cents a share, from $166 million, or 68 cents a share in the same quarter last year. Both Kohl's and Nordstorm lowered their earnings guidance for fourth quarter.

Among technology stocks, chipmaker Intel Corp. (NYSE: INTC) declined $1.11 or 7.69% to $13.32. Microsoft (NASDAQ: MSFT) slipped $1.19 or 5.6% to finish at $20.06. iPhone maker Apple Inc.