U.S. stocks had their biggest drop in four weeks as oil prices surged and Federal Reserve Chairman Alan Greenspan said the record current-account deficit may cause foreign investors to sell dollar-denominated assets.

The Dow Jones industrial average fell 115.64, to 10,456.91. The 1.1 percent drop was its biggest since Oct. 22. The Standard & Poor's 500-stock index lost 13.21, or 1.1 percent, to 1170.34. The Nasdaq composite index slid 33.65, or 1.6 percent, to 2070.63.

The S&P 500 declined 1.2 percent this week, following its best three-week rally in two years. The Dow average, which closed at an eight-month high Thursday, lost 0.8 percent this week because of yesterday's drop. The Nasdaq slipped 0.7 percent this week after rising for the previous four weeks.

Crude oil futures had their biggest rise in five months. And the dollar sank to its lowest in more than four years against the yen and dropped against the euro after Greenspan said foreign investors will tire of financing the record current-account deficit, the widest measure of trade.

An index of financial stocks in the S&P 500 shed 1.6 percent, with 24 of its 25 members declining. Citigroup, the world's biggest financial services company, lost 76 cents, to $45.15. Morgan Stanley, the No. 2 U.S. securities firm, slid $1.32, to $52.26.

Homebuilders fell as higher borrowing costs may lead to a decline in home sales. Centex, the fourth-largest U.S. homebuilder by stock market value, lost $1.06, to $54.15. Pulte Homes Inc., the third-biggest, shed $1.64, to $56.37.

An index of 19 semiconductor-related companies in the S&P 500 dropped 3 percent, for the biggest decline among the benchmark's 24 industry groups. Applied Materials shed 66 cents, to $16.99. Novellus Systems, the No. 3 maker of semiconductor equipment, lost 89 cents, to $27.57.

Novell, a seller of network-software and consulting services, dropped 54 cents, to $6.59, after saying revenue last quarter was $300.7 million, compared with the $304.1 million expected by analysts in a Thomson Financial survey.

Other Indicators

* The New York Stock Exchange composite index fell 55.72, to 6947.19; the American Stock Exchange index fell 0.54, to 1364.82; and the Russell 2000 index of smaller-company stocks fell 9.11, to 612.95.

* Declining issues outnumbered advancing ones by 5 to 2 on the NYSE, where trading volume rose to 1.53 billion shares, from 1.46 billion on Thursday. On the Nasdaq Stock Market, declines outnumbered advances by 2 to 1 and volume totaled 2.01 billion, up from 1.91 billion.

* The price of the Treasury's 10-year note fell $7.50 per $1,000 invested, and its yield rose to 4.21 percent, from 4.11 percent on Thursday.

* The dollar fell against the Japanese yen and the euro. In late New York trading, a dollar bought 103.08 yen, down from 104.09 late Thursday, and a euro bought $1.3014, up from $1.2968.

* Light, sweet crude oil for December delivery settled at $48.44, up $2.22, on the New York Mercantile Exchange.

* Gold for current delivery rose to $446.80 a troy ounce, from $442.60 on Thursday, on the New York Mercantile Exchange's Commodity Exchange.