Stocks close down on dismal week for Dow
Stocks fell Friday, closing out what was the worst week of the year for the Dow Jones industrial average.
The market was dragged lower by a weak performance from retailers and companies sensitive to higher interest rates. Home builders and banking stocks were among the best performers.
Stocks had a decent start to the week, but investors were hit hard the last three days. The Dow retreated 2.2 percent for the week, its worst in 2013. The broader Standard & Poor's 500 index lost 2.1 percent for the week, its second-worst performance of the year.
The possibility of a cutback in the Federal Reserve's massive bond-buying program in September has roiled the bond market, which has spilled over into stocks. The yield on the benchmark U.S. 10-year Treasury note rose to 2.83 percent, its highest level since July 2011. A week ago, the yield was 2.58 percent.
Rising bond yields have a direct impact on the cost of borrowing for everyone -- from homeowners trying to refinance mortgages to companies trying to sell debt -- making them a potential long-term drag on the economy.
The S&P 500 lost 0.33 percent to 1,655.83. The Dow fell 30.72 points to 15,081.47 and the Nasdaq composite lost 0.1 percent, to 3,602.78.-- AP