All three major U.S. indexes were up slightly Friday after a hellish Thursday that saw the Dow Jones industrial average drop 391 points. The Dow was up about 32 points or 0.3 percent in afternoon trading Friday.

All week, traders have been stung by worries that the economy is headed for another recession. European leaders seem unable or unwilling to solve the debt crisis that threatens some of its biggest financial institutions. In the U.S., Republican and Democrats remain in a stubborn standoff that could force the government to shut down.

Even with the slight gains on Friday, the Dow and S&P 500 are down more than 6 percent for the week. The Dow has fallen more than 15 percent since its recent peak on July 21. It fell below its 2011 closing low of 10,719, reached Aug. 10, several times Friday morning. This is the Dow’s worst week since the first week of October 2008 – the week that Congress passed the $700 billion Troubled Asset Relief Program.

Moody's Friday downgraded eight Greek banks by two notches. The rating agency said Greece's economic situation is worsening as government attempts to slash spending provoke violent protests. Greece appears increasingly likely to default on its debts. European officials have begun to speak openly of the possibility, and the fears have roiled international markets.

The Dow would have to fall another 485 points to reach the traditional definition of a bear market — a 20 percent decline from its peak. The Dow was at 12,810 on April 29.