A drop in retail sales in December added to the gloom. Investors responded by rotating away from cyclical stocks back to tech stocks like Microsoft and Tesla, helping push up the Nasdaq.
But Toews Asset Management CEO Phil Toews warns that tech stocks could get hit hard.
"Similar to what we saw in the Internet bubble burst, growth got hammered and tech got hammered and value did on a relative basis much better. So if this downturn continues and we don't know that it will, but if it continues, value could potentially be a much stronger sector or place to be than growth stocks, where we could, we could see, you know 50% declines or more if it really picks up negative momentum."
The Dow shed 200 points or roughly a half percent. The S&P 500 closed nearly flat, but the Nasdaq gained more than a half percent.
On the week, the three indexes lost ground.
JPMorgan Chase was among the top decliners on the Dow and S&P, dropping more than 6%. The lender's quarterly profit fell 14%. The bank, an economic bellwether, warned that soaring inflation, the Omicron threat, and normalization of trading levels could challenge the banking sector's growth in the coming months.
Profit dropped more steeply at Citigroup, whose shares shed 1%.
One bright spot: Wells Fargo. Its profit nearly doubled, topping Wall Street's targets.
Leading the S&P's list of gainers: Las Vegas Sands and Wynn Resorts. Shares rose after Macau's government capped the number of new casino companies allowed to operate.
Stock markets in the U.S. will be closed Monday for the Martin Luther King holiday.