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NEW YORK — The slowing economy reasserted itself on Wall Street Friday, sending stocks tumbling and erasing much of the big gains the market enjoyed earlier in the week. 

Rumors of losses tied to slower economic growth triggered a selloff first in financial stocks and later in high-tech bellwether Cisco Systems. The plunge illustrated how vulnerable the market remains to even a hint of bad news despite its big rally Wednesday on the Federal Reserve’s interest rate cut. 

Heavy selling began early in the session, when rumors spread that Bank of America had suffered credit losses tied to the weakening economy. The company quickly denied the rumors, but its statement did not placate extremely nervous investors. 

Bank of America lost nearly 7 percent, closing down $3.50 at $48. Those rumors “reminded the market that something is happening out there,” said Dan Ascani, president and research director for Global Market Strategists in Gainesville, Ga. “Maybe it’s not Bank of America, but it’s unnerved by whatever it is.” 

The damage spread to other financial stocks and then the rest of the market. 

Banker J.P. Morgan Chase traded down $3.06. Wal-Mart lost $2.25 and Boeing fell $2.25. 

Another set of rumors that Cisco had held a special board meeting to discuss earnings problems helped send the stock tumbling more than 12 percent, or $5.25, to $36.63. Cisco said it would not comment on the rumors. 

Earnings warnings from a handful of companies exacerbated the selling. Investors punished Borders Group, sending it down 7 percent, off 94 cents at $12, after the retailer said fourth-quarter results would miss expectations because of weak holiday sales. 

A similar gloomy forecast from Nordstrom sent the tony retailer’s stock down 7 percent, falling $1.50 to $18.88. 

“I’d expect we’re going to see selloffs like this on and off through January and probably through February and March,” said Charles Pradilla, chief investment strategist at SG Cowen Securities.  

“The Fed rate cut earlier this week was very good, but there are still other issues to work out. Some of these stocks are still overvalued, and then there’s earnings and the slowing economy.” 

A Labor Department report Friday that the nation’s employment rate held steady at 4 percent last month added to the concerns about the economy. 

Investors who have been worried that a decelerating economy would hurt profits temporarily set aside those worries Wednesday, when the Fed cut interest rates earlier than expected. The result: the biggest one-day rally ever in the Nasdaq and a healthy bounce for the Dow. 

But the reprieve didn’t last as market worries over why the Fed would act so dramatically — breaking from its history of incremental action to ease rates more than expected and before its next scheduled meeting — shifted to the forefront again. 

“It’s nervous about what the Fed is reacting to,” said Ascani, the head of Global Market Strategists. 

The Dow closed the first week of 2001 down 124.84 or 1.2 percent. The Nasdaq ended the week down 62.87 or 2.5 percent, while the S&P 500 fell 21.93 or 1.7 percent. 

Declining issues outnumbered advancers 5 to 3 Friday on the New York Stock Exchange. Consolidated volume came to 1.69 billion shares, compared with 2.48 billion Thursday. 

The Russell 2000 index fell 14.06 to 463.14. 

Overseas, Japan’s Nikkei stock average rose 1.3 percent. Germany’s DAX index was up 0.1 percent, Britain’s FT-SE 100 gained 0.2 percent, and France’s CAC-40 dropped nearly 1.0 percent. 

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