NEW YORK (TheStreet) -- Stocks recovered from session lows but were still battered on Friday as crude oil continued to plummet, falling below $58 a barrel.
The major indexes remained firmly in the red, as the the market heard for its fourth daily loss of the week. The S&P 500 was down 1%, the Dow Jones Industrial Average was off 1.3%, and the Nasdaq slipped 0.66%.
The S&P 500 and Dow are around 3% lower than all-time highs set a week ago while the Nasdaq is down nearly 2% from its late November record.
Crude was under pressure again after the International Energy Agency on Friday cut its forecast for oil demand in 2015 by 230,000 barrels a day to 900,000 barrels. It's the fifth time in six months the IEA has slashed its forecast.
"Short-term, it's all trading-driven and so it could continue to drift downward. It's mostly geopolitical pressure," LK Balanced Fund's Tom Sudyka said in a call.
West Texas Intermediate crude on Friday was down 3.6% to $57.77 a barrel. On Thursday, the commodity slipped below $60 a barrel for the first time since July 2009. Prices are now down 44% from a mid-summer peak. Oil stocks continued to crater with Exxon Mobil (XOM) down 2.4%, Chevron (CVX) falling 1.8% and BP (BP) 2.4% lower. The Energy Select Sector SPDR ETF (XLE) dropped 1.5%.