New York ? Stocks fell sharply Friday and for the week, with oil above $140, concerns about financials and the economy catching up to the market and leading to the broad indices losing nearly 20 percent from their 2007 highs, which would mark an official entry into bear-market territory.

With crude hitting a new high at $142.99 a barrel, the market grew increasingly worried about the impact of surging commodities prices on consumers. In morning trade, a survey by the University of Michigan revealed consumer confidence slid further in June.

“With oil prices bursting through the $140 threshold and seemingly unstoppable, economists are busily debating whether it’s all going to end in fire (inflation) or ice (deep recession),” said Doug Porter, senior economist at BMO Capital Markets.

“Equity markets aren’t so concerned about the fineries of the debate, but are instead much more focused on the ‘it’s all going to end’ portion of the discussion,” he wrote in a note.

After plunging 358 points Thursday, the Dow Jones Industrial Average fell another 106.91 points, or 0.9 percent, to 11,346.51 on Friday.

After sliding 4.2 percent this week, the Dow has now lost nearly 20 percent since its Oct. 9 record high of 14,165.

Of the Dow’s 30 components, 22 fell, with investors again heavily selling battered financial components American Express Co., Citigroup Inc., and J.P. Morgan Chase & Co.

American International Group Inc. fell 1.2 percent, after the insurance giant said it would absorb $5 billion in losses from securities lending, Bloomberg News reported, citing an executive there.

Also Friday, the S&P 500 Index fell 4.77 points, or 0.4 percent, to 1,278.88, while the Nasdaq Composite Index dipped 5.74 points to 2,315.63.

The S&P 500 index, which most market watchers follow instead of the Dow to determine the direction of the broad market, is now off 18.1 percent from its high of 1,562 points hit on October 10, 2007.

“It still doesn’t mean a lot because the market’s direction now remains a function of the economic backdrop,” said Paul Nolte, director of investments at Hinsdale Associates.

“This is a milestone along the way, not a destination,” Nolte said of the likelihood the broad market will enter officially enter bear-market territory next week. “I would say it’s only the beginning of the bear-market given that it’s not unusual for the market to lose 30 percent or more in a recession,” he said.

Financials shares were the worst performers on the S&P 500, with the sector losing 1.2 percent Friday, followed by consumer staples, off 1 percent, and consumer discretionary stocks, off 0.9 percent.

Tech shares fell further, with Palm Inc. losing over 8.3 percent as the handset maker reported a worse-than-forecast 26 percent sales fall and didn’t offer an outlook.