Updated from 4:12 p.m. EDT

Stocks follow the path of least resistance, and in the absence of much news on the economy and the corporate side, that path was to the downside Friday.

The

Dow Jones Industrial Average

sank 185.58 points, or 1.37%, to 13,360.26, and the

S&P 500

fell 19.63 points, or 1.29%, to 1502.56. The

Nasdaq

slumped 28 points, or 1.07%, at 2588.96.

An entire week of uneven trading reversed the gains from the previous week. After adding 1.6% last week, the Dow fell 2% over the last five sessions. The S&P 500 lost 2%, and the Nasdaq finished the week down 1.4%.

"One-hundred-point swings on the Dow have become the standard, it seems," said Larry Wachtel, senior market analyst with Wachovia Securities. "The entire month of June has been following this norm. This is part and parcel of a bull market that has been rallying but is overextended and overbought. There's a lack of catalysts, and within this thin atmosphere we're bound to have these swings."

About 3.89 billion shares changed hands on the

New York Stock Exchange

, with decliners beating advancers by a 3-to-1 margin. Volume on the Nasdaq reached 2.74 billion shares, and losers outpaced winners 2 to 1.

Bond prices jumped in the absence of economic data. The 10-year Treasury was up 9/32 in price, yielding 5.16%, and the 30-year bond was adding 22/32 to yield 5.25%.

Rising energy futures pressured the major indices. Oil was higher by 49 cents to $69.14 a barrel, and gasoline gained 4 cents at $2.28 a gallon.

Precious metals were mixed. Gold was up $2.80 to $657 an ounce, while silver dipped 7 cents at $13.02 an ounce.

Aside from oil-related measures, most subsector indices ended in the red. The Philadelphia/KBW Bank Sector Index was lower by 1.6%, the Nasdaq Biotech Index finished down 1.5%, the Philadelphia Semiconductor Sector Index lost 1.5%, and the Amex Airline Index was off 0.9%.

The S&P Retail Index was also lower, despite a jump in shares of

Macy's

(M) - Get Report

on speculation the retailer was an acquisition target. Macy's finished up $2.56, or 6.6%, to $41.43.

Among other names in the news,

BP

(BP) - Get Report

is near an arrangement that would see it surrender its interest in a $20 billion natural gas project in Russia to a government-controlled concern. BP ended up 53 cents, or 0.8%, to $69.76.

Back in the U.S., investors finally got a chance to trade private-equity firm

Blackstone Group

(BX) - Get Report

, which priced its initial public offering at the high end of the expected range after the prior close. Shares began trading on the

New York Stock Exchange

, rising as high as $38. Blackstone finished its first day at $35.06, up 13%.

Meanwhile, on the research front,

Gap

(GPS) - Get Report

was initiated with an outperform rating and a $24 price target at Friedman Billings Ramsey. At the same time, the firm downgraded

Starbucks

(SBUX) - Get Report

to market perform from outperform, took it off the Top Picks list and slashed its target by $18 to $26.

Gap off by 12 cents, or 0.6%, to close at $19.34. Starbucks fell 72 cents, or 2.7%, to $25.54.

Elsewhere, ThinkEquity upgraded

Crocs

(CROX) - Get Report

to buy, and Lehman cut

Abercrombie & Fitch

(ANF) - Get Report

to equal weight from overweight.

Crocs rose 99 cents, or 2.2%, to $46.91, while Abercrombie lost $2.87, or 3.8%, to $73.71.

Most markets overseas were in the red, but Hong Kong's Hang Seng gained 0.2%. Tokyo's Nikkei slipped 0.3%. London's FTSE and Frankfurt's DAX both eased 0.2%.