Wall Street ends volatile week with moderate losses

The Dow Jones industrial average ended 0.5% lower on the final day of a volatile week on Wall Street as traders looked ahead to next week's Federal Reserve meeting on interest rates.

"We are finishing the week with a slightly more bearish tone," David Rosenberg, chief economist and strategist at Gluskin Sheff, told clients in a note.

Stocks moved off session lows up to the 4 p.m. ET close. The Dow limited its losses to under 100 points, falling 89. The Nasdaq and S&P 500 posted smaller losses in percentage terms, down 0.1% and 0.4%, respectively.

Bespoke Investment Group said the market Friday had "a risk off tone."

Ask Matt: Should I bail on the market now?

If there's a silver lining to Friday's weak trading session, it is that this week's market volatility has been to the upside.

The Dow was up about 90 points for the week. And while the wild market swings continue -- as investors gauge whether central banks will continue to support markets at levels of the past -- the moves have skewed to the upside after last Friday's nearly 400-point rout. While the Dow has posted three triple-digit moves this week, two of them have been of the bullish flavor. The Dow soared nearly 200 points yesterday, offsetting a nearly 260-point drop Tuesday. The blue chip gauge kicked off the week Monday with a 240-point surge.

Weighing on market sentiment Friday was more turbulence in the banking sector, in this case in Europe.

The U.S. Justice Department is seeking a $14 billion civil settlement with Deutsche Bank over the German financial institution's alleged role in artificially propping up the U.S. housing market in the lead up to the Great Recession.

Deutsche Bank: DOJ demanding $14B fine

Deutsche Bank shares traded in New York plunged 8.4% to $13.50 in pre-market action Friday after the company confirmed that Justice negotiators had staked out "an opening position" of $14 billion in their discussions.

The bank vowed to fight the government's demands.

"Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited," the company said in a statement. "The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts."

Weakness in the oil patch was also weighing on the broader stock market. The price of U.S.-produced crude was down $1.06, or 2.4% to $42.85.

In the bond market, the yield on the 10-year Treasury note inched up to 1.702%.

In foreign markets, stocks were mostly higher in Asia. Shares of Tokyo's Nikkei 225 rose 0.7%, with stocks also closing higher in Hong Kong.

Stocks, however were lower in Europe, hurt by financial shares following the Deutsche Bank news. The broad Stoxx Europe 600 was down 0.7%. Germany's DAX index was down 1.5% and the CAC 40 in Paris was down 0.9%

Contributing: Nathan Bomey