NEW YORK, New York - U.S. stocks retreated sharply on Friday as sellers swarmed Wall Street. The upward trend in the U.S. dollar meantime continued.

"I wouldn't expect a complete reversal going back to the June lows or something like that, however, the choppiness we're seeing today and this week does reflect a lot of the bear case that's out there," FBB Capital Partners' Mike Bailey told CNBC Friday. "I think seeing the market trade sideways or seeing a bit of a pause in that rally definitely makes sense based on some of the facts that we're seeing out there."

Technology stocks tanked with the Nasdaq Composite diving 260.13 points or 2.01 percent to 12,705.21.

The Dow Jones industrials fell 292.30 points or 0.86 percent to 33,706.74.

The Standard and Poor's 500 dropped 55.21 points or 1.29 percent to 4,228.48.

On foreign exchange markets, the dollar rally continued unabated. The euro slipped to 1.0041 by the New York close Friday. The British pound sank to 1.1822. The Japanese yen was sharply lower at 136.78. The Swiss franc dropped to 0.9586.

The Canadian dollar was unwanted at 1.2995. The Australian dollar fell sharply to 0.6877. The New Zealand dollar slumped to 0.6173.

On overseas equity markets, the FTSE 100 in Londongained 0.11 percent. The German Dax dropped 1.12 percent. The CAC 40 let go 0.94 percent.

In Japan, the Nikkei 225 dipped 11.81 points or 0.04 percent to 28,930.33.

The Australian All Ordinaries inched up one point or 0.01 percent to 7,358.70.

South Korea's Kospi Composite slid 15.36 points or 0.61 percent to 2,492.69.

The Shanghai Composite retreated 19.47 points or 0.59 percent to 3,258.08.

In Hong Kong, the Hang Seng added 9.12 points or 0.05 percent t to 19,773.03.

New Zealand's S&P/NZX 50 shed 129.53 points or 1.10 percent to 11,684.81.