The major averages recouped some of the losses from the previous session, but clinched the worst week since March as traders took profits and grew nervous of a resurgence in Covid-19 cases.

The Dow Jones Industrial Average gained 477 points, or 1.9%, to finish the day at 25,605. The blue-chip index had traded over 800 points higher earlier in the day. The S&P 500 rose 1.3% to 3,041 while the Nasdaq Composite added 1% to close at 9,588.

For the week, the Dow and S&P 500 lost 5.5% and 4.7%, respectively, while the Nasdaq shed 2.3%. All three notched their worst week since March 20.

The stocks relying on a successful reopening of the economy rose on Friday with Delta Air Lines up 11.8% and cruise-line operator Carnival Corp. adding 14.5%.

Wall Street's fear gauge signaled more wild trading ahead. The Cboe Volatility Index rose to its highest level since April and traded above 43 before moving back below 36 by the closing bell.

The Dow, S&P 500 and Nasdaq on Thursday all recorded their biggest one-day losses since mid-March on Thursday, posting losses of at least 5%.

Wall Street's weekly losses came as data compiled by Johns Hopkins University showed the number of new coronavirus cases has risen in states like Arizona, South Carolina and Texas as they continue their reopening process. Arizona cases have nearly doubled since Memorial Day.

Still, Treasury Secretary Steven Mnuchin told CNBC's Jim Cramer the U.S. can't shut down the economy again. Overall, more than 2 million coronavirus cases have been confirmed in the U.S. along with over 100,000 deaths.

On the earnings front, Adobe rose 4% following its earnings report, while lululemon athletica fell 3%.  Tesla pulled back 3.9% pressured by Goldman Sachs downgrading the stock to Neutral from Buy.

Interestingly, shares of bankrupt Hertz rose 37% after the U.S. Bankruptcy Court granted approval to sell up to $1 billion in shares.

U.S. Treasuries finished on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.18%, and the 10-yr yield increased five basis points to 0.70%. The U.S. Dollar Index increased 0.4% to 97.11. WTI crude declined 0.5%, or $0.17, to $36.24/bbl.