Stocks fall again: Dow closes down 1.6%

— -- Friday was another bad day for stocks, as the Dow Jones industrial average closed down 1.6%, the Nasdaq down 1.6% and the S&P 500 down 1.5%.

Earlier in the day, stocks fell, rose and fell again, reversing early losses but then succumbed to a global sell-off stoked by economic jitters and Europe's debt problems.

Shares of software maker Intuit soared 12% at one point, the most in the S&P 500, after the company reported better-than-expected earnings in the fiscal fourth quarter.

European banking shares fell near two-and-a-half-year lows, dragged down by rumors about banks' potential losses on bonds issued by heavily-indebted governments. Earlier, Asian shares took a beating, with major indexes in China and Japan losing more than 2.5%.

Thursday marked a return to the volatile trading that led to record-setting market swings last week. A raft of bad economic news overseas and in the U.S. spooked investors. Economists with Morgan Stanley said the U.S. and Europe are "dangerously close to recession," adding, "it won't take much in the form of additional shocks to tip the balance."

Investors continued to swap risky investments for those viewed as safe. The yield on the benchmark 10-year Treasury note rose slightly to 2.10% after hitting a record-low below 2% Thursday. Bond yields fall as their prices rise.