US stocks have dropped, solidly snapping a three-day winning streak on renewed concerns about Spain after its borrowing costs soared into the danger zone.
The Dow Jones Industrial Average closed at 12,822.57 on Friday, down 120.79 points, or 0.93 per cent, from Thursday.
The S&P 500 shed 13.85 points (1.01 per cent) to 1,362.66, while the tech-rich Nasdaq slumped 40.60 (1.37 per cent) to 2,925.30.
"Spanish economic, banking, and sovereign debt worries are stymieing sentiment," Charles Schwab & Co analysts said.
Struggling Spain's benchmark 10-year bonds jumped above 7.0 per cent, considered an unsustainable level that drove Greece, Ireland and Portugal to seek international rescues.
The bloc's fourth-largest economy forecast it would remain in recession in 2013 and one of its regions, Valencia, asked for a bailout.
The eurozone debt worries overshadowed some positive US earnings reports, the Schwab analysts said.
Wall Street stocks opened lower and stayed there all day.
There were no US economic indicators.
Financial stocks fell sharply.
Dow member Bank of America fell 2.5 per cent, Citigroup shed 2.8 per cent, Morgan Stanley skidded 3.4 per cent.
Hewlett-Packard fell 2.5 per cent, tying with Bank of America as the session's largest Dow decliner.
GE was one of three gainers on the 30-stock Dow, up 0.3 per cent.
The huge conglomerate, considered a bellwether of the global economy, said it was on-track for double-digit earnings growth this year.
Fellow Dow component Microsoft dropped 1.80 per cent after logging in results that beat forecasts, despite its first quarterly loss.
Xerox lost 1.9 per cent after reporting second-quarter earnings in line with estimates and lowering its full-year estimate.
Google reported a surge in quarterly profit on the back of rising online advertising revenue, beating Wall Street expectations.
The online search giant climbed almost 3.0 per cent on the Nasdaq.
On Thursday, US stocks scored a third straight day of gains as investors looked past disappointing economic data to positive corporate earnings reports.
The Dow and the S&P 500 each climbed 0.3 per cent and the Nasdaq added 0.8 per cent.
Bond prices rose.
The 10-year Treasury yield fell to 1.46 per cent from 1.51 per cent on Thursday, while the 30-year declined to 2.55 per cent from 2.58 per cent.
Bond prices and yields move in opposite directions.