NEW YORK, New York - U.S. and global stocks continued falling Friday in a dismal end to the week. The price of oil dived under $80 a barrel, bond yields jumped, and the British pound plunged. All the major indices had lost more than two percent of their capitalization in late trading, but rebounded towards the close to trim losses.

"The market has been transitioning clearly and quickly from worries over inflation to concerns over the aggressive Federal Reserve campaign," Quincy Krosby of LPL Financial told CNBC Friday. "You see bond yields rising to levels we haven't seen in years, it's changing the mindset to how does the Fed get to price stability without something breaking."

"This is a global macro mess that the market is trying to sort out," Krosby added.

At the close of trading Friday, the Dow Jones industrials had clawed back some ground to end 486.27 points or 1.62 percent lower at 29,590.41

The Nasdaq Composite tumbled 198.88 points or 1.80 percent to 10,867.83.

The Standard and Poor's 500 was off 64.75 points or 1.72 percent at 3,693.24.

On foreign exchange markets, the U.S. dollar soared. The British pound fell to a more than thirty-year low to 1.0863 by the New York close Friday.

The euro was sold off sharply to 0.9691. The Japanese yen weakened to 143.33 despite heavy intervention by the Bank of Japan a day earlier. The Swiss franc was unwanted at 0.9823.

The Canadian dollar dropped sharply to `1.3579. The Australian dollar tumbled to 0.6530. The New Zealand dollar dropped dramatically to 0.5746.

On overseas equity markets, the FTSE 100 in London lost 1.97 percent Friday. The German Dax was also down 1.97 percent, while the CAC 40 in Paris, France, retreated a hefty 2.28 percent.

In Japan, the Nikkei 225 fell 159.30 points or 0.58 percent to 27,153.83.

The Australian All Ordinaries was off 132.70 points or 1.92 percent at 6,788.70.

In New Zealand, the S&P/NZX 50 declined 83.50 points or 0.72 percent to 11,434.82.

South Korea's Kospi Composite tumbled 39.43 points or 1.69 percent to 2,292.58.

The Hang Seng in Hong Kong dived 214.68 points or 1.18 percent to 17,933.27.

China's Shanghai Composite was off 20.54 points or 0.66 percent at 3,088.37.