U.S. stocks plunged on Friday as major COVID-19 outbreaks forced Texas and Florida to reinstate some restrictions.

The Dow Jones Industrial Average fell 730 points, or 2.8 percent, and the S&P 500 declined 75 points, or 2.4 percent.

Texas Gov. Greg Abbott (R) said Friday that the state would order bars and some outdoor recreation businesses to close, and lower the operating capacity of indoor restaurants.

In Florida, the Department of Business and Professional Regulation suspended consumption of alcohol on premises at bars.

Both states saw record daily increases this week in new COVID-19 cases.

Markets had recovered a significant portion of their steep losses in March on expectations for a swift and straightforward recovery from the pandemic-induced economic downturn.

But Friday's declines erased the remainder of the gains made in June, raising questions about the outlook for markets.