U.S. stocks plunged Friday, capping a week of carnage that sent the Dow Jones Industrial Average into correction territory as fears about China’s economy and global growth spurred heavy selling.

The main indexes posted massive one-day selloffs and their biggest weekly declines in nearly four years.

“Today’s markets are driven by fear, with a lot of momentum shares seeing a retracement,” said Myles Clouston, senior director at Nasdaq Advisory Services.

The Dow Jones Industrial Average DJIA, -1.84% plummeted 530.94 points, or 3.1%, to close at 16,459.75, leaving the blue-chip index down more than 10% from its record close in May, meeting the widely used definition of a correction. The index dropped 5.8% on a weekly basis, the steepest decline since September 2011.

The S&P 500 SPX, -1.15% fell 64.84 points, or 3.2%, to settle at 1,970.89, falling below 2,000 for the first time since February. Consumer discretionary, energy and technology stocks were hit hardest. The index saw a 5.8% weekly fall, the steepest since September 2011. The main benchmark wiped out $1.1 trillion of its market value over the week.

The Nasdaq Composite COMP, -0.13% fell 171.45 points, or 3.5%, to 4,706.04 for a weekly drop of 6.8%, the biggest weekly decline since August 2011.

Selling pressure on Wall Street stemmed from downbeat data from China, which resulted in a rout of Asian and European markets as well as a renewed plunge in oil prices. Shares came under fresh pressure in afternoon trade as the U.S. oil benchmark slid below $40 a barrel for the first time since February 2009 in response to global-demand concerns and a persistent supply glut.

An early gauge of China’s factory activity fell to a 6½-year low in August. The data come over a week after Beijing’s surprise move to devalue China’s currency on Aug. 11.

All the main benchmarks are now trading below the 200-day moving average level, which many technical analysts say leads to further declines.

“We are seeing a lot of fear on Wall Street, but at the same time, investors are not running to Treasuries and gold, said Jim Paulsen, chief investment strategist & economist at Wells Capital Management.

“The stock market has been vulnerable for some time and I would not be surprised to see a 10%-15% correction this year,” Paulsen said.

Read:The Last Great Bubble may finally be starting to pop

A measure of implied volatility on the S&P 500, the CBOE Volatility index jumped 24% to 23.82, or 85% over the week, the largest weekly jump ever.

The small-cap Russell 2000 RUT, -3.35% fell 15.74 points, or 1.3%, to close at 1,156.79 and entered correction territory, having pulled back 10.7% from its all-time high.

The stock beatdown has some analysts looking for a snapback.

“While we would like to see a 10% or more correction in the market, it is unlikely, as there are too many people who have been sitting on the sidelines and will be trying to buy this dip,” said Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management.

Read: Meet the market timer who said it would get ugly

Pressure on China, pressure on Fed: The weaker Chinese data will pressure the Federal Reserve into delaying an interest-rate increase that had been expected in September, some analysts say. But others say any delay would worry investors, as it would signal the Fed is concerned about global deflationary pressures.

Read: This selloff is about China and emerging markets, with a dash of Fed.

Pain around the globe: The dollar DXY, +0.15% tumbled against the Japanese yen, last trading at ¥121.96, compared with ¥123.44 seen in late North American trade on Thursday. Gold futures US:GCV5 rose as the selloffs spurred a flight to safety, with the yellow metal posting its biggest one-week gain since January to end at a six-week high.

European and Asian stocks fell.

Stocks to watch: Shares of Apple Inc. AAPL, +3.03% dropped 6.1% and are off more than 21% from their all-time high, marking a move into bear-market territory.

Shares of Deere & Co. DE, -3.49% plunged more than 8% after the company posted a fiscal third-quarter profit of $1.53 a share but lowered its outlook for the next quarter.

Ross Stores Inc.’s ROST, -2.00% shares tumbled 9.5% after the discount retailer said the second-quarter profit rose on higher sales but rising expenses dented margins. The company also warned the second half of the year will remain challenging.

Shares of Salesforce.com CRM, +0.93% rose 2% after the company raised its full-year outlook late Thursday and earnings topped Wall Street estimates.

Barbara Kollmeyer contributed to this report.