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.

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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