Wall Street was on course for a second week of losses as markets pulled back from an autumn rally, largely taking cues from overseas. US stocks were lower on Friday, after the People's Bank of China raised bank reserve requirements for the second time in two weeks, stepping up its fight to rein in prices, a move that could temper growth.
Losses eased by midday with light selling across the market and isolated pockets of gains in the materials and industrial sectors. Financials were the weakest sector, with J.P. Morgan Chase & Co, a Dow component, off 0.6 percent to $39.41.
Investors looked ahead to a period of range-bound trading heading into the end of the year after a stellar run. The S&P 500 has fallen about 2.5 percent in the last two weeks but is still up 7 percent this year. The Dow Jones industrial average dropped 12.94 points, or 0.12 percent, to 11,168.29. The Standard & Poor's 500 Index fell 1.58 points, or 0.13 percent, to 1,195.11. The Nasdaq Composite Index lost 2.75 points, or 0.11 percent, to 2,511.65.