Stocks closed lower on Friday as investors booked profits following of a recent upward surge and bank shares dropped after executives indicated March had been a tougher month for the industry than the previous two.

Energy shares dipped and oil fell 3.6 percent

According to preliminary figures, the Dow Jones industrial average <.DJI> dropped 148.38 points, or 1.87 percent, to 7,776.18. The Standard & Poor's 500 Index <.SPX> fell 16.92 points, or 2.03 percent, to 815.94. The Nasdaq Composite Index <.IXIC> slid 41.80 points, or 2.63 percent, to 1,545.20.

For the week, the Dow rose 6.8 percent, the S&P 500 gained 6.2 percent and the Nasdaq added 6 percent. All registered a third straight week of gains.

(Reporting by Rodrigo Campos; editing by Gary Crosse)