Energy shares were the big losers in the broad decline, falling alongside crude oil prices, though other cyclical groups, including industrials and financials, also lost
altitude.
The S&P 500 has gained almost 9 percent since the beginning of the year. But mixed economic data and tensions between Iran and Israel have given investors few reasons lately to chase the market higher after three straight winning weeks for the benchmark index.
"We're in a small pullback, but that's to be expected after a very strong rally," said David Kelly, the chief market strategist for JPMorgan Funds in New York, who added that he considered stocks cheaper than other asset classes like bonds.
The Dow Jones industrial average dipped 2.73 points, or 0.02 percent, to 12,977.57 at the close. The Standard & Poor's 500 Index slipped 4.46 points, or 0.32 percent, to 1,369.63. The Nasdaq Composite Index shed 12.78 points, or 0.43 percent, to close at 2,976.19.
NYMEX- March 2 (Reuters) - U.S. crude futures dropped nearly percent on Friday after Saudi Arabia denied a report of a ipeline fire, while a stronger dollar prompted investors to rim positions in riskier assets, including commodities.
The swift market reversal from a post-settlement rally on Thursday that was spurred by the pipeline report caused U.S. rude futures to end the week lower, ending three straight eekly gains.
NYMEX RBOB gasoline and heating oil posted sharp losses for he day. For the week, however, gasoline rose while heating oil ell.
The dollar rose against the euro after Spain set a softer eficit target this year, defying a European Union fiscal pact nd stoking fresh worries about the euro zone debt crisis.
Tensions in the Middle East, which also helped fuel Brent rude's surge on Thursday to levels not seen since a record run in July 2008 and extend a U.S. crude rally to 10-month highs, will highlight Monday's meeting in Washington between U.S. President Barack Obama and Israeli Prime Minister Benjamin Netanyahu on Monday.
On the New York Mercantile Exchange, crude for April delivery settled at $106.70 a barrel, falling $2.14, or 1.97 percent.
CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade rallied from early declines to set a five-month high and extend their winning streak to 10 straight sessions on a mix of technical fund buying and bullish fundamentals, traders said.
Market draws support from export demand for U.S. soybeans in the wake of expected production losses in South America, and worries that U.S. farmers might not plant enough soybeans in 2012 to meet demand.
FCPO-KUALA LUMPUR, March 2 (Reuters) - Malaysian crude palm oil futures fell on Friday as traders booked profits from a rally driven by surging crude oil prices and prospects of tighter soyoil supplies from South America.
Prices rose more than six percent in February alone and have come under pressure this week from concerns of orders shifting to Indonesia that offers more discounts due to ample feedstock and lower export taxes for refined palm oil.
"In general, demand is strong because people will buy more palm oil than soyoil due to the South American drought but Malaysia may not be capturing demand because of Indonesia," said a trader with a foreign commodities brokerage in Kuala Lumpur.
Benchmark May palm oil futures
lots.
REGIONAL EQUITY- BANGKOK, March 2 (Reuters) - Most Southeast Asian stock markets posted modest gains on Friday as rising oil prices bolstered energy and resource-related shares, with foreign buying helping push Thai shares to the highest in almost 16 years.
Foreign inflows into the Thai market have gathered steam this year on hopes of a recovery in the flood-hit economy, and as improving U.S. economic data boosts investors' appetite for
riskier assets.
Singapore was up 0.49 percent and Malaysia gained 0.66 percent, climbing at one point to the highest in more than seven months.
