US stocks fell on Friday as a $US15.5 billion quarterly loss from General Motors and a rise in oil prices added to fears the economy could slip into recession.
A government report showing US employers cut jobs for the seventh straight month in July added to market worries, though the decline in payrolls was not as severe as had been feared.
The report also showed the jobless rate jumped to its highest level in four years.
General Motors' second-quarter loss was the latest example of how rising oil prices are hurting consumer spending. Its shares slumped 7.6% to $US10.23 and weighed on the Dow and S&P.
Crude oil settled up $US1.02 at $US125.10 a barrel in New York after Israeli Deputy Prime Minister Shaul Mofaz said Iran was heading toward a major breakthrough in its nuclear programme.
The statement increased concerns of a potential confrontation that could disrupt supply from the OPEC nation.
The Dow Jones industrial average was down 51.70 points, or 0.45%, at 11,326.32. The Standard & Poor's 500 Index was down 7.07 points, or 0.56%, at 1,260.31.
The Nasdaq Composite Index was down 14.59 points, or 0.63%, at 2,310.96.
Sliding global metal prices and weak manufacturing data around the world knocked the shares of aluminum maker Alcoa nearly 5% lower.
Shares of Caterpillar, the mining and heavy equipment maker, fell 2% percent. The two were the top drags on the Dow.
On the Nasdaq, the biggest drag came from biotechnology company Biogen, whose stock slid more than 28% to $US50.01 on renewed safety concerns about its multiple sclerosis drug.
Two new brain disease cases were detected in patients taking Tysabri, which Biogen jointly manufactures with its Irish partner Elan.
For the week, the Dow ended down 0.4%, the S&P closed up 0.2% and the Nasdaq ended flat.
