US stocks close nearly 400 points down as oil falls

WASHINGTON

U.S. stocks nosedived Friday as the Dow fell nearly 400 points following crude oil’s price slipping to its lowest in more than a decade.

The index sunk nearly 540 points during afternoon trading before recovering to lose at 390 points.

Investors continued to fret during one of the worst days in trading since a late summer sell off.

Fueling concerns, the price of crude fell below $30 per barrel to $29.28 – the cheapest since 2003 -- with eyes focused on Iran as it prepares to re-enter the global oil market following a landmark international accord with world powers.

Meanwhile, the S&P 500 fell 2.16 percent and the Nasdaq dropped 2.74 percent.

The losses follow one of the best days in the past month for the stock market on Thursday as stocks closed up 228 points.

White House spokesman Josh Earnest said that Treasury Department officials are closely watching market movements.

In addition to oil, investors have been weary of China's shaky economy following Beijing's decision to devalue its currency, furthering concerns that China’s growth is slowing.