The Dow Jones Industrial Average plummeted 3.2 percent at 25,286.92 on Friday.
The broad-based S&P 500 sank 3.9 percent to 2,905.60, while the tech-rich Nasdaq Composite Index plunged 4.1 percent to 8,384.22.
The yield on the 10-year Treasury note also fell below point-7 percent to a new record low.
The equity market rout has wiped out roughly $4 trillion of household worth in the last two weeks.
“Unless reversed fully and quickly, this will weigh on consumer spending over the next few years,” IHS said in a report. “More immediately, weakening consumer attitudes will likely slow consumer spending in the second quarter, and businesses are likely to put some investment plans on hold until the outlook clears up.”
In the oil market, the US benchmark futures contract, West Texas Intermediate for delivery in April, ended at $41.28 a barrel, down 10.1 percent, AFP reported.
In London, Brent oil futures for delivery in May plunged 9.4 percent at $45.27 per barrel. Both West Texas Intermediate and London Brent ended at their lowest levels since April 2016.
The coronavirus outbreak has rattled markets across the globe by disrupting global supply chains and threatening to hinder economic growth.
Global travel is also plummeting as event cancellations and travel restrictions mount.
US President Donald Trump on Friday claimed that Wall Street stocks “will bounce back,” but the Federal Reserve should cut interest rates again.