Washington - US stock indices posted steep drops on opening Friday, plunging more than 4 per cent on continued uncertainty over the state of the global economy.

The weak opening in New York followed sharp falls in Europe, Asia and the Middle East earlier in the day on fears of a recession following the widening financial crisis.

The Dow Jones Industrial Average was down 372.51 points, or 4.29 per cent to 8,318.74 at 1409 GMT, about 30 minutes after opening. The broader Standard & Poor's 500 tumbled 43.01 points, or 4.74 points, to 865.10. The technology heavy Nasdaq Composite Index fell 69.69, or 4.35 per cent, to 1,534.22.

Both the S&P 500 and Nasdaq have fallen more than 40 per cent since the start of 2008 as a global credit crunch has wreaked havoc with markets worldwide.