Credit woes slam global markets

LONDON (CNNMoney.com) -- Global stock markets were roiled Friday after a plunge on Wall Street sent the Dow Jones industrial average down 311 points.

Credit woes and ongoing concerns about the housing slump sparked a sharp fall in U.S. stocks Thursday. The Dow Jones industrial average, a barometer of the stock market which tracks 30 large companies, sank 2.3 percent. It was the biggest fall this year since Feb. 27, when a swoon in global markets triggered a 416 point loss for the Dow.

U.S. stocks looked set to recover from the steep losses on Friday. At 5:01 a.m. ET, futures pointed to slight gains at the open.

The selloff on Wall Street pummeled stocks overseas. Asian markets finished the session sharply lower. In Europe, stocks were mixed in early trading after diving the past session. The FTSE 100 posted its biggest one-day percentage decline since March 2003 on Thursday, according to Reuters.

Investors around the world have been rattled by signs that tougher conditions in the credit market are bringing an end to the buyout boom. The take-private spree has helped lift stock prices and driven deal activity. Tighter credit could also raise the borrowing cost for companies, which could pressure corporate earnings.

Market watchers will be keeping an eye on a release on U.S. gross domestic product, the broadest measure of the nation's economic activity. Economists surveyed by Briefing.com are expecting the first take on GDP to show the economy grew at a 3.2 percent annual pace in the second quarter after posting modest growth of 0.7 percent the prior quarter.

On the earnings front, Chevron (Charts, Fortune 500) is due to report quarterly earnings before the market open. Analysts surveyed by Thomson First Call expect the oil firm to post earnings of $2.30 a share on revenue of $50.4 billion.