Dow falls 730 points as investors weigh surge in COVID-19 cases

• US stocks fell on Friday as spiking coronavirus cases threatened to slow economic reopenings.
• Bank stocks slumped after the Federal Reserve said on Thursday that it would limit stock buybacks and cap dividends.
• The Commerce Department said on Friday that US consumer spending jumped by a record amount in May even as personal incomes fell.
• Read more on Business Insider.

US stocks fell on Friday as investors continued to watch spiking coronavirus cases threaten economic-reopening efforts nationwide.

Investors have been closely watching as surges in new coronavirus cases throw off some states' reopening progress. On Friday, the governors of Texas and Florida rolled back some of their reopening plans by ordering bars to close. Texas Gov. Greg Abbott also placed new restrictions on some other businesses to curb the spread of COVID-19.

Here's where US indexes stood at the 4 p.m. ET market close on Friday:

• S&P 500: 3,009.05, down 2.4%
• Dow Jones industrial average: 25,015.55, down 2.8% (730 points)
• Nasdaq composite: 9,757.22, down 2.6%

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Bank stocks led losses after the Federal Reserve on Thursday said it would limit stock buybacks and cap dividends. The central bank said the decision was part of an effort to boost the capital of big banks to guard against further shocks stemming from the coronavirus pandemic.

Nike fell more than 7% after the company said sales plummeted 38% in the last quarter because of sweeping store closures amid the pandemic. Facebook and Twitter both declined more than 7% after Unilever said it would pull its advertising from the platforms for the rest of the year because of hate speech and alienating content on them.

Shares of Gap bucked the downward trend, rallying as much as 42% following an announcement that the company had reached a deal with Kanye West to create a line of Yeezy apparel.

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In economic data, US consumer spending jumped by a record 8.2% in May while personal income declined, the Commerce Department said on Friday.

In an online conference on Friday, Christine Lagarde, the president of the European Central Bank, said that while the worst of the coronavirus crisis might be over, the recovery would be "sequential and restrained" and could be transformational for some industries.

Oil prices slid. West Texas Intermediate crude fell as much as 2.4%, to $37.79 per barrel. Brent crude, the international benchmark, slipped 1.9%, to $40.73 per barrel, at intraday lows.

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