Stocks tumbled on Friday, accelerating losses during afternoon trading as the failure of tech-focused lender Silicon Valley Bank pressured the broader banking sector and spooked investors fearing the implications for the broader market.

The Dow Jones Industrial Average was last down 402 points, or 1.2%, and on pace for a fourth day of losses. The S&P 500 dropped 1.5%, while the Nasdaq Composite shed 1.8%.

The FDIC took control of Silicon Valley Bank's deposits, after shares tumbled Thursday when the bank announced plans to raise more than $2 billion in capital in a bid to offset losses from bond sales. The shutdown marks the biggest bank failure since the Global Financial Crisis.

Regional bank stocks tumbled in the wake of Silicon Valley Bank's demise, with the SPDR S&P Regional Banking ETF last down nearly 7%. Several bank stocks were repeatedly halted on Friday, including First Republic, PacWest and crypto-focused Signature Bank. Shares last traded down between 21% and 34%.

Some bellwether bank stocks suffered smaller losses as the fallout wreaked havoc on regional names. Goldman Sachs and Bank of America were last down 4% and 1.5%.

"Banking system fears are rattling investors right now," said Ed Moya, an analyst at Oanda. "It's becoming pretty clear that the Fed's rate hiking campaign has definitely taken policy to some very restrictive levels, and now some banks are going to really struggle here."

Investors are also coming to realize the need for smaller banks for a healthy and thriving economy, he added.

Traders also digested the February jobs report, which gave some hints that inflation could be slowing. Payrolls increased more than expected, but investors focused on the smaller-than-expected gain in wages, which could cause the Federal Reserve to rethink more aggressive on rate hikes.

The 10-year Treasury yield dropped more than 18 basis points to 3.743%. The spike in rates this year has weighed on stocks so that reversal Friday lent some support.

Wall Street is coming off a down session, with the Dow losing more than 500 points Thursday. For the week, the Dow is down 3.6%, on pace for its worst week since September 2022, while the S&P 500 is off 3.5%.