U.S. stocks are slumping after a morning of up-and-down trading.

Major market indexes are falling as traders focus on fears that European leaders will be unable to contain a spreading financial crisis. Many fear that officials lack the tools to rescue Italy or Spain if one of those countries defaults before a larger bailout fund is in place.

Shares rose early Friday after the government said hiring picked up slightly in July. The rally lasted less than half an hour.

Just before noon, the Dow is down 141, or 1.2 percent, at 11,230. The S&P 500 is down 18, or 1.5 percent, at 1,181. The Nasdaq composite is down 37, or 1.7 percent, at 2,173.

The Dow fell 512 points Thursday, its worst day since 2008.