Forexpros – U.S. stocks finished lower on Friday, as investors sold before a long holiday weekend on fears the European debt situation will worsen and drag on global growth.
The Dow Jones Industrial Average closed down 0.60% on Friday, the S&P 500 index was down 0.22% while the Nasdaq Composite index finished down 0.07%.
Greece is fast approaching June 17 elections, and fears persist enough fringe candidates will seize power and reject austerity measures, which could cut off the flow of bailout money and open the door to a Greek exit from the eurozone.
The country’s neighbors have been meeting to discuss ways to firewall the crisis and eventually dowse it, although consensus has yet to emerge on any one game plan in particular.
Talk of all eurozone countries contributing to a single bond issue to alleviate debt burden in beleaguered countries like Greece has been growing, although the larger economies like Germany still remain chilly to the idea.
Meanwhile in Spain, reports that Bankia financial institution will need at least EUR15 billion in bailout funding sparked fears the European debt crisis is rekindling in Spain.
Also in Spain, calls from the regional Catalonian government for Madrid for help refinance its debts also sent U.S. equities investors running to the sidelines ahead of the long weekend.
Bullish consumer data in the U.S. offset losses.
The Thomson Reuters/University of Michigan’s consumer sentiment index rose to 79.3 in May, topping forecasts for 77.8.
The reading was the highest in more than four years.
Leading Dow Jones Industrial Average gainers included Hewlett-Packard, up 2.53%, Wal-Mart Stores, up 0.37%, and Intel, up 0.35%.
Leading index losers included Boeing, down 1.96%, Caterpillar, down 1.63%, and JPMorgan Chase, down 1.41%.
European indices, meanwhile, finished up.
After the close of European trade, the EURO STOXX 50 rose 0.25%, France’s CAC 40 rose 0.32%, while Germany’s DAX 30 finished up 0.38%. Meanwhile, in the U.K. the FTSE 100 closed up 0.03%.
U.S. markets will be closed Monday for Memorial Day.
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