NEW YORK - Global stocks slid on Friday as investors cut their exposure to risky assets amid signs of an anemic U.S. economic recovery.Investors sought safe havens ahead of a holiday-shortened week in the United States and in anticipation of the year-end period, which can prove to be volatile.
Oil fell below $77, weighed by a stronger dollar, and falling stock prices raised worries about the economy and the outlook for energy demand.
The dollar rose against a basket of major currencies, with the U.S. Dollar Index up 0.42 percent at 75.606.
Equity markets around the world fell as investors took profits as the end of 2009 approaches.
MSCI's all-country world index has gained more than 70 percent from March lows, and investors are leery of any signs of weakness as they seek to justify further advances in equity prices.
"It's been a very good year for a lot of people, and it makes sense that players are going to square up positions today ahead of the U.S. holiday and month-end," said Michael Woolfolk, strategist at BNY Mellon in New York.
U.S. markets will close next Thursday for the Thanksgiving holiday, while Monday marks a national holiday in Japan.
Worse-than-expected quarterly results from computer maker Dell Inc and homebuilder D.R. Horton helped push U.S. stocks lower in the third straight negative session for Wall Street.
The Dow Jones industrial average closed down 14.28 points, or 0.14 percent, at 10,318.16. The Standard & Poor's 500 Index fell 3.52 points, or 0.32 percent, at 1,091.38. The Nasdaq Composite Index slid 10.78 points, or 0.50 percent, at 2,146.04.
For the week, the Dow rose 0.5 percent, the broad market S&P 500 fell 0.2 percent and the technology-rich Nasdaq slipped 1 percent.
A decline in technology shares is problematic, and "not a sign of a healthy market," said Quincy Krosby, market strategist at Prudential Financial in Shelton, Connecticut.
"We're not writing the obituary for this market, but it is consolidating, getting far more careful. It is prudent to take some money and some risk off the table," Krosby said.
The MSCI index of Asia Pacific stocks traded outside Japan fell 0.7 percent, and Japan's Nikkei index slid 0.5 percent.