NEW YORK — U.S. stocks fell Friday for a fourth day out of five, ending a dismal week that saw the Nasdaq Composite Index drop almost 7 percent and financial stocks take a hammering as bigger subprime mortgage losses were revealed almost every day.
The Dow Jones industrial average shed 223.55 points, or 1.7 percent, to 13,042.74, giving it a weekly decline of nearly 4.1 percent.
Of the Dow’s 30 components, 24 ended in the red, led by IBM Corp., off 5.5 percent and General Motors, down 5.6 percent.
The S&P 500 declined 21.07 points, or 1.4 percent, to 1,453,70, a slide of 3.7 percent for the week.
Especially hard hit, the Nasdaq Composite slumped 68.06 points Friday, or 2.5 percent, to 2,627.94.
The technology-heavy index has declined 6.5 percent since the end of last week as the year’s high-performing tech sector endured another down session.
“In order for the market to move higher, tech has to move back into the leadership position,” said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank.
Even high-flying Google Inc. was not spared, with the Internet search engine off 4.2 percent at $663.50, down sharply from the intraday high of $747.24 it hit just two days ago.
Volume on the New York Stock Exchange topped 1.8 billion shares, and for every stock purchased on the exchange, nearly three were sold.
On the Nasdaq, nearly 3 billion shares traded hands, and decliners edged out advancers more than 2 to 1.
Stocks were little swayed by an unexpected decline in the U.S. trade deficit in September, which the Commerce Department attributed to a surge in exports.
The market also displayed little interest in a monthly gauge of consumer sentiment, which fell further in November, to 75.0 compared with 80.9 in October. The index released by Reuters and the University of Michigan is now at its lowest level in 13 months and under expectations calling for 79.5.
The decline in consumer sentiment could well coincide with a grim holiday sales season for retailers, said retail consultant Britt Beemer.
Wachovia, the nation’s fourth-largest bank, said in a regulatory filing that it expects loan losses of as much as $600 million in the fourth quarter.
Wachovia’s warning helped spark further selling of embattled financial stocks, but its stock, as well as others in the sector, rebounded late in Friday’s session.
Qualcomm, the second-biggest U.S. maker of chips for mobile phones, said legal woes and increased competition would cause 2008 results to fall under expectations.
Shares of blue chip Merck & Co. climbed after the drug maker said it would settle most of its liability lawsuits tied to its Vioxx painkiller for about $4.85 billion.
