Investing.com - U.S. stocks plummeted on Friday as part of a global selloff fueled by concerns that emerging markets may be cooling, which sparked a risk-off trading session marked by demand for safe-haven currencies, the yen namely.
At the close of U.S. trading, the Dow Jones Industrial Average fell 1.96%, the S&P 500 index fell 2.09%, while the Nasdaq Composite index fell 2.15%.
Ruffled feathers in global stock markets, the product of weak Chinese data and fears that emerging markets are facing headwinds, sent investors ditching U.S. stocks on Friday and jumping to the sidelines.
A preliminary Chinese HSBC Manufacturing PMI released earlier this week fell to 49.6 for January from 50.5 in December, missing market calls for an uptick to 50.6.
A reading under 50 signifies contraction, and the numbers spooked investors with concerns that emerging-market economies may grow less.
Investors fleeing risk avoided U.S. stocks on sentiments many countries carry exposure to emerging markets.
Elsewhere, Microsoft released earnings that beat expectations, while consumer products giant Procter & Gamble missed many analysts' expectations though the company said it was sticking with 2014 revenue forecasts.
Leading Dow Jones Industrial Average performers included Microsoft, up 2.19%, Procter & Gamble, up 1.23%, and Merck, up 0.90%.
The Dow Jones Industrial Average's worst performers included 3M, down 3.33%, General Electric, down 3.31%, and Boeing, down 3.23%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 2.95%, France's CAC 40 fell 2.79%, while Germany's DAX 30 fell 2.48%. Meanwhile, in the U.K. the FTSE 100 finished down 1.62%.