S&P 500 suffers worst week since June 2012

[NEW YORK] The Standard & Poor's 500 Index fell for a second day last Friday, giving it the biggest weekly drop in two years, as concern over Argentina and Portugal overshadowed data that signalled the Federal Reserve may have leeway to keep rates low.

JPMorgan Chase & Co and Morgan Stanley slumped more than 2.1 per cent as a committee ruled that Argentina's default will trigger US$1 billion of credit-default swaps. LinkedIn Corp jumped 12 per cent after projecting revenue that beat forecasts. Procter & Gamble Co increased 3 per cent as profit topped estimates amid cost reductions.

The S&P 500 fell 0.3 per cent to 1,925.15 at 4pm in New York last Friday, bringing its weekly loss to 2.7 per cent - the worst since June 2012. The Dow Jones Industrial Average declined 69.93 points, or 0.4 per cent, to 16,493.37, after erasing its gains for the year. About 7.3 billion shares changed hands on US exchanges that day, 27 per cent above the three- month average.