The Nasdaq turned higher on Friday, while both the Dow and S&P 500 sharply cut losses, after the White House said it strongly believed a privately held banking system was the correct way to go, tempering investor fears about possible nationalization.

CNBC reported that the U.S. Treasury department will provide some details on the Obama administration's bank rescue plan next week, helping financial shares cut losses.

The Dow Jones industrial average <.DJI> was down 51.93 points, or 0.70 percent, at 7,414.02. The Standard & Poor's 500 Index <.SPX> was down 6.23 points, or 0.80 percent, at 772.71. The Nasdaq Composite Index <.IXIC> was up 2.99 points, or 0.21 percent, at 1,445.81.

(Reporting by Ellis Mnyandu; Editing by James Dalgleish)