The Dow Jones industrial average fell 37.36 to end the week at 5,426.82, shaving off part of yesterday's 87-point rally, but it was the third straight day of relative calm compared with the markets nail-biting gyrations earlier this week.
Broader market indexes were negative too, with the technology-heavy Nasdaq market showing the worst losses after a two-day rebound from its recent tumbles.
Decliners led advancers by a 7-to-5 margin on the New York Stock Exchange, with 988 up, 1,400 down and 756 unchanged. NYSE volume totaled 402.24 million shares, down from 469.65 million yesterday, but enough to make it the busiest week in NYSE history.
The NYSE index fell 2.19 to 342.91; Standard & Poor's 500-stock index lost 4.84 to 638.72. The Nasdaq index fell 10.29 to 1,099.53 and the American Stock Exchange index dropped 2.87 to 548.76.
Analysts attributed much of the day's weakness to the bond market, where interest rates edged higher to 6.98 percent. Yesterday, stocks rallied with bonds as Federal Reserve Chairman Alan Greenspan calmed fears about rising inflation and interest rates.
After Greenspan's comments, the yield on the 30-year Treasury bond - a key determinant of borrowing costs - dropped below 7 percent for the first time in two weeks, heartening stock investors concerned about higher corporate borrowing costs and slower consumer spending.