U.S. stocks tumbled, falling for a fourth week in five and erasing the Dow Jones industrial average’s 2012 gain, amid concern that the global slowdown is accelerating and Europe’s debt crisis is worsening.
The Standard & Poor’s 500-stock index slumped 2.5 percent on Friday, the most since November, after American employers added the fewest workers in a year during May. All 10 industries in the benchmark index slipped in the holiday-shortened week.
Energy shares sank 4.6 percent as oil had the biggest monthly decline in more than three years. An index of homebuilders tumbled 10 percent, the most since August, amid worse-than-expected housing data. Facebook plunged 13 percent.
The S&P 500 lost 3 percent to 1,278.04 for the week, trimming its gain for the year to 1.6 percent. The Dow dropped 336.26 points, or 2.7 percent, to 12,118.57, putting it below 2011′s closing level and erasing a year-to-date rally that had been 7.1 percent as of May 1.
“People are just de-risking,” said Joseph Keating, who helps oversee $1 billion as chief investment officer at CenterState Wealth Management. “It’s unclear what policies would be put in place by the European leaders to basically facilitate whatever is going to happen in Greece, along with how to hold the banking system in Europe together.”
Equities declined amid the monthly employment figures and data showing the U.S. economy grew more slowly in the first quarter than previously estimated.
The Treasury will sell $30 billion in three-month bills and $27 billion in six-month bills Monday. They yielded 0.075 percent and 0.125 percent in when-issued trading. The Treasury will also sell four-week bills Tuesday.