J.P. Morgan Chase and Co.and the New York Federal Reserve rescued Bear Stearns from immediate collapse with 28-day term notes but analysts concluded the move spelled the end for Bear Stearns' independence.

By close Friday, the Dow Jones industrial average was down 194.65 points to 11,951.09 points, down 1.6 percent. The Standard & Poor's 500 index lost 27.34 points to 1,288.14, off 2.08 percent. The Nasdaq composite index of tech-dominated stocks dropped 51.12 points to 2,212.49 points, down 2.26 percent.

The 10-year U.S. Treasury note gained 22/32 to yield 3.442 percent.

The euro traded at $1.5664 from $1.5609 Thursday, while the dollar traded at 99.24 yen from 100.78 yen Thursday.

In Tokyo, the Nikkei index closed down 191.84 points to 1,2241.60, down 1.54 percent.

In London, the FTSE 100 index dropped 64.80 points Friday to 5,627.60, off 1.14 percent.