Wall Street's angst over the ongoing fallout from the credit crisis made for a turbulent end to a volatile week Friday — stocks tumbled...

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NEW YORK — Wall Street’s angst over the ongoing fallout from the credit crisis made for a turbulent end to a volatile week Friday — stocks tumbled, soared and then turned south again as investors tried to assess the dangers faced by the country’s biggest mortgage financiers, Fannie Mae and Freddie Mac.

The Dow Jones industrial average fell 128.48, or 1.1 percent, to 11,100.54 after having fallen earlier in the session to 10,977.68. It last traded below 11,000 on July 25, 2006.

Microsoft, one of the 30 Dow stocks, fell 20 cents to close at $25.25 a share. Boeing, also a Dow stock, dove $2.71 to $63.28.

Broader stock indicators also logged declines. The Standard & Poor’s 500 index fell 13.90, or 1.1 percent, to 1,239.49, and the Nasdaq composite index fell 18.77, or 0.8 percent, to 2,239.08.

The Dow, which traded down more than 250 points in the session, briefly moved into positive territory Friday before resuming its decline.

A new intraday trading high for oil prices above $147 a barrel also weighed on stocks.

The fate of the government-chartered companies was a focus of trading Friday as it had been earlier in the week. Shares of Fannie Mae and Freddie Mac fell sharply over several sessions on concerns about their stability.

“The issue is who is going to make good on the long-term debt, not who is going to provide them with short-term cash,” said Jerry Webman, chief economist at Oppenheimer Funds.

“It started with housing but it’s now turning into this issue of availability of capital,” he said of the overall problems in the financial sector.

In economic news, the United States’ trade deficit narrowed in May as exports — including industrial supplies and consumer goods — climbed to all-time highs.

The good news did little to buoy investors’ moods.

“I don’t know if it can get much worse,” Stone said of investor sentiment. “Usually you get this horrible sentiment and you’re due for at least a bounce out of it.”