Stocks break two-month winning streak

U.S. stocks fell last week, breaking the Dow Jones industrial average's longest winning streak since 2004, after credit downgrades for Greece, Portugal and Spain spurred concern that global economic growth will slow and prosecutors considered filing fraud charges against Goldman Sachs.

Banks dropped the most in the Standard & Poor's 500-stock index this week as the Justice Department scrutinized Goldman Sachs, which was sued by securities regulators on April 16. Goldman Sachs lost 7.8 percent, completing its biggest monthly retreat since Lehman Brothers Holdings filed for bankruptcy in 2008. Transocean and Halliburton fell more than 12 percent as an oil spill in the Gulf of Mexico worsened.

The S&P 500 slumped 2.5 percent to 1186.69. The Dow lost 195.67 points, or 1.8 percent, to 11,008.61, its first weekly decline since February. Both posted the largest weekly losses since January, when President Obama proposed bank curbs.

"People are now questioning if maybe the worst is not over for Greece and Portugal," said Mark Bronzo, an Irvington, N.Y.-based money manager at Security Global Investors, which oversees $21 billion. "The rationale is: The sovereign risk will weigh on Europe and the global economy. It's another unknown for the stock market."

The U.S. Treasury will sell $24 billion in three-month and $25 billion in six-month bills on Monday. They yielded 0.162 percent and 0.23 percent, respectively, in when-issued trading.

The government also plans to sell $26 billion in 52-week bills Tuesday, which yielded 0.422 percent in when-issued trading. Four-week bills will also be sold Tuesday, with the amount to be announced the day before.

-- Bloomberg News