Friday proved to be a bad day for major stocks, which tumbled more than 2.5 per cent.

The Dow Jones industrial average plunged 250 points at 9,712.73, the sharpest decline since July. Dow industrial's all 30 stocks slipped.

The Standard & Poor's 500 plunged about 2.8 per cent at 1,036.19.

The Nasdaq composite index dropped 52.44 points to 2,045.11.

European stocks also followed suit. Major indexes lost 2.21 per cent in London and 2.86 per cent in Paris.

However, Asian equities gained on the same day. Major stocks in Tokyo gained 1.45 per cent, while Shanghai soared 1.20 per cent.

Speaking on the drop, economist Anthony Chan at JPMorgan private wealth management said, "The market needs and demands to see evidence that things are getting better, not just that they may be getting better."

On the other hand, the benchmark 10-year Treasury note jumped nearly 31/32, to 102 on Friday. The yield dropped from 3.50 per cent on Thursday to 3.38 per cent on Friday.