Investing.com - U.S. stocks fell on Friday after Greece failed to secure access to bailout money while Standard & Poor's downgraded Italian banks, news that sent investors selling stocks and stocking up on less risky assets like Treasuries.
The Dow Jones Industrial Average closed down 0.69%, the S&P 500 index was also down 0.69% while the Nasdaq Composite index finished down 0.80% on Friday.
Greece is seeking EUR130 billion in assistance funding to avoid a messy default in March.
To obtain those funds, the country must agree to austerity measures from multilateral entities, which include the European Union, the European Central Bank and the International Monetary Fund.
Greece presented a game plan to European officials, who said Greece failed to slash spending enough and rejected the country's appeal for aid.
While Greece still has a few days to come back and meet bailout terms, nerves were seriously on edge Friday.
Members of interim Prime Minister Lucas Papademos's coalition said they were fed up with appeasing European Union officials with tough austerity and threatened to vote against such measures in Parliament, although the party in question has too little representation to thwart approval.
Still, eroding political support coupled with violent protests roiling the streets of Athens sent investors ditching risky assets and rushing to the greenback to ride out the volatility.
Nerves rattled further when the Standard & Poor's ratings agency slapped downgrades on Italian financial institutions, fueling fears that the Italy, much larger than Greece, faces major economic headwinds.
Furthermore, the U.S. trade deficit widened more than expected in December thanks to pricier oil but also due to increased demand for imported cars and other goods from abroad, which further fueled the dollar's appeal over stocks in the global risk-off session.
Weaker than expected consumer confidence figures also fueled selling.
Leading Dow Jones Industrial Average performers included Home Depot, up 0.09%, Coca-Cola, down 0.06%, and Wal-Mart Stores, down 0.11%.
Leading index losers included Alcoa, down 3.48%, DuPont, down 1.73%, and Hewlett-Packard, down 1.44%.
European indices fell as well.
After the close of European trade, the EURO STOXX 50 fell 1.65%, France's CAC 40 fell 1.51%, while Germany's DAX 30 finished down 1.41%. Meanwhile, in the U.K. the FTSE 100 closed down 0.73%.
On Sunday, Japanese gross domestic product figures are due out, while on Monday, French inflation figures will publish.
Markets will keep an eye on a German bond auction on Monday to gauge how immune Europe's largest economy is to the Greek debt crisis.
The Dow Jones Industrial Average closed down 0.69%, the S&P 500 index was also down 0.69% while the Nasdaq Composite index finished down 0.80% on Friday.
Greece is seeking EUR130 billion in assistance funding to avoid a messy default in March.
To obtain those funds, the country must agree to austerity measures from multilateral entities, which include the European Union, the European Central Bank and the International Monetary Fund.
Greece presented a game plan to European officials, who said Greece failed to slash spending enough and rejected the country's appeal for aid.
While Greece still has a few days to come back and meet bailout terms, nerves were seriously on edge Friday.
Members of interim Prime Minister Lucas Papademos's coalition said they were fed up with appeasing European Union officials with tough austerity and threatened to vote against such measures in Parliament, although the party in question has too little representation to thwart approval.
Still, eroding political support coupled with violent protests roiling the streets of Athens sent investors ditching risky assets and rushing to the greenback to ride out the volatility.
Nerves rattled further when the Standard & Poor's ratings agency slapped downgrades on Italian financial institutions, fueling fears that the Italy, much larger than Greece, faces major economic headwinds.
Furthermore, the U.S. trade deficit widened more than expected in December thanks to pricier oil but also due to increased demand for imported cars and other goods from abroad, which further fueled the dollar's appeal over stocks in the global risk-off session.
Weaker than expected consumer confidence figures also fueled selling.
Leading Dow Jones Industrial Average performers included Home Depot, up 0.09%, Coca-Cola, down 0.06%, and Wal-Mart Stores, down 0.11%.
Leading index losers included Alcoa, down 3.48%, DuPont, down 1.73%, and Hewlett-Packard, down 1.44%.
European indices fell as well.
After the close of European trade, the EURO STOXX 50 fell 1.65%, France's CAC 40 fell 1.51%, while Germany's DAX 30 finished down 1.41%. Meanwhile, in the U.K. the FTSE 100 closed down 0.73%.
On Sunday, Japanese gross domestic product figures are due out, while on Monday, French inflation figures will publish.
Markets will keep an eye on a German bond auction on Monday to gauge how immune Europe's largest economy is to the Greek debt crisis.