Updated from 4:19 p.m. ESTStocks tumbled Friday as worries about consumer credit and spending intensified, offsetting news of a big buyout in the beaten-down financial sector. The Dow Jones Industrial Average slid 246.79 points, or 1.92%, to 12,606.30, and the S&P 500 fell 19.31 points, or 1.36%, to 1401.02. The Nasdaq Composite dropped 48.58 points, or 1.95%, at 2439.94. "The market is still reconciling the fact that the economy is slowing and might be in a recession," said Paul Nolte, director of investments with Hinsdale Associates. "Valuations may be too high compared to the low earnings, and it might just not be the financials. We need to have volume expanding on winning days and contract on losing days, something we haven't seen yet." On the New York Stock Exchange 4.47 billion shares changed hands, as decliners topped advancers by a 2-to-1 margin. Volume on the Nasdaq reached 2.40 billion shares, with losers beating winners 7 to 3. The major averages each finished the week with heavy losses. The Dow declined by 4.2%, and the S&P 500 ended down 4.5%. The Nasdaq was the worst performer, notching a decline of 6.4%.