Friday, May 20, 2011

Wall Street slips on euro zone, spillover effect feared

US stocks fell on euro-zone debt worries that could spill over into next week's trading with a bearish note, while retailers lost ground after a weak profit outlook from Gap.

The Dow Jones industrial average was down 93.28 points, or 0.74 percent, to end at 12,512.04. The Standard & Poor's 500 Index was down 10.33 points, or 0.77 percent, at 1,333.27. The Nasdaq Composite Index was down 19.99 points, or 0.71 percent, to close at 2,803.32.

European shares fell, with investors reducing their exposure to riskier assets as concerns over the euro zone debt crisis intensified after ratings agency Fitch downgraded Greece's credit rating.

The pan-European FTSEurofirst 300 index of top shares closed 0.2 percent lower at 1,136.12 points, bringing total losses for the week to 0.4 percent.

The Nikkei stock average edged lower in thin trade and many investors moved to the sidelines saying the benchmark may stay stuck in recent narrow ranges while a furious debate over the future of Japan's power industry hangs over the market.

The benchmark Nikkei average closed down 0.1 percent at 9,607.08 while the broader Topix shed 0.5 percent to 827.77.