Market rally comes to end on Greece, China fears
A rally that pushed a key index to a record high petered out Friday.
Despite the losses, the market ended with its best week in nearly two months. It got a boost from the Federal Reserve on Wednesday, as policymakers signaled that they were in no hurry to raise interest rates from historically low levels.
“Many sectors and stocks have had a good few days, so some of it is (down to) people taking off some of their profits,” said JJ Kinahan, TD Ameritrade's chief strategist.
The Standard & Poor's 500 index lost 11.48 points, or 0.5 percent, to 2,109.76. For the week, the index was up 0.8 percent, its best gain since the week ending April 24.
The Dow Jones industrial average fell 99.89 points, or 0.6 percent, to 18,015.95.
The Nasdaq composite slid 15.95 points, or 0.3 percent, closing at 5,117.
An impasse in bailout negotiations between Greece and its creditors and worries about a stock bubble in China weighed on the market. Utilities and financial stocks were among the biggest decliners.
The price of oil fell, ending the week nearly flat.
Investors spent much of the week focused on the Federal Reserve's next move on interest rates.
The market got some reassurance from the central bank on Wednesday, when the Fed suggested it wanted to see more improvement in the economy and signs of inflation before raising rates.
China's main stock index plunged, raising concerns that a bubble in the market may have burst. The Shanghai Composite Index tumbled 6.4 percent and is 13 percent lower for the week. The index has more than doubled in the past year.
A series of disappointing sales forecasts hurt stocks.
Hershey fell 3.5 percent as it cut its revenue outlook for the year. The company said it plans to cut about 300 jobs by the end of the year.
CarMax fell 3.7 percent as the used car dealership chain reported fiscal first-quarter sales that fell short of forecasts.