(Reuters) - concerns of global growth and a sharp drop in oil prices sent jitters through Wall Street, leading to the three major US stock indexes lower for a second day on Friday.
Despite increased demand, as oil traders took profits eased after a three-day winning streak that began Monday and pushed to the maximum prices of 2016, and as the dollar moved higher.
Financial stocks came under pressure again as global issues, including uncertainty about interest rate hikes and the impending vote on the accession of Britain in the European Union sent investors flock to safe haven assets.
The yield on government bonds declined globally, while gold prices held near a three-week high.
"The US indices are running what is happening outside this morning. We have seen a decline in oil prices and strength in US Treasuries and that combination adds ups to a red day," said Paul Springmeyer, director of investment management of US Bank Wealth General in Minneapolis.
"There is still some uncertainty out there ... and returns will be quite muted until those question marks are resolved," Springmeyer said.
At 11:15 a.m. ET, the Dow Jones Industrial Average (DJI) fell 68.69 points, or 0.38 percent, to 17,916.5.
The S & P 500 (SPX) was down 12.47 points, or 0.59 percent, to 2,103.01.
The Nasdaq Composite (IXIC) fell 43.08 points, or 0.87 percent, to 4,915.53.
Despite the losses from Thursday, the S & P and Dow were still on track to close higher for the week, but the Nasdaq moved into the red.
Eight of the 10 sectors of the S & P were lower, led by a drop of 1.1 percent in the index of financial shares (SPSY).
The index is down nearly 3 percent in the year, making it the worst performing index. The index for medical care (SPXHC) also moved into negative territory for the year.
Goldman Sachs (N: GS) fell 1.5 percent and was the biggest drag on the Dow.
There were a few rare bright spots in the market.
Intel (O: INTC) shares reversed course to trade 0.2 percent after winning a contract to supply chips for some Apple (O: AAPL) iPhone, Bloomberg said. Qualcomm will replace Intel (O: QCOM), which fell 1.2 percent.
Drugstore operator Walgreen (O: AMB) rose 5 percent and its takeover target Rite Aid (N: RAD) was 3.6 percent after the New York Post said there were signs the FTC could approve the agreement. Walgreens gave the biggest boost to the S & P and Nasdaq.
Declining issues outnumbered on the New York Stock Exchange 2,186 to 691. On the Nasdaq, 2,000 issues fell and 638.
The S & P 500 index showed 29 new 52-week highs and no new lows, while the Nasdaq recorded 18 new highs and new lows 32.
