Global stocks on euro zone downgrade reports

Stocks dropped on Friday, snapping a four-day winning streak, after news reports that Standard & Poor's would downgrade credit ratings on several euro-zone countries.

The Dow Jones industrial average was down 49.72 points, or 0.40 percent, at 12,421.30. The Standard & Poor's 500 Index was down 6.39 points, or 0.49 percent, at 1,289.11. The Nasdaq Composite Index was down 13.76 points, or 0.51 percent, at 2,710.94.

For the week, the Dow rose 0.5 percent, the S&P gained 0.9 percent and the Nasdaq has risen 1.4 percent.

European shares fell after sources said credit rating agency Standard & Poor's was set to go through with a long-mooted downgrade of several euro zone countries, weighing on sentiment for riskier assets such as equities.

The pan-European FTSEurofirst 300 index of top shares fell 0.1 percent to close at 1,017.84 points, after going as high as 1,026.81 and as low as 1,007.86. Over the week, the index rose 0.4 percent, its fourth week of gains.