US stocks were on track to end the week with modest gains as major indexes pulled back from session lows after falling more than 1 percent on Friday on talk that Standard & Poor's was ready to downgrade ratings on several euro-zone countries. The slide, led by banks, came despite solid data that showed US consumer sentiment hit an eight-month high as Americans became more optimistic about job prospects.
The S&P financial index fell 1.2 percent, making this sector the day's biggest decliner. The Dow Jones industrial average was down 88.02 points, or 0.71 percent, at 12,383.00. The Standard & Poor's 500 Index was down 9.52 points, or 0.73 percent, at 1,285.98. The Nasdaq Composite Index was down 16.72 points, or 0.61 percent, at 2,707.98.
For the week, the S&P was on track to end moderately higher, up 0.6 percent. The Dow was on track to finish the week up 0.2 percent, while the Nasdaq was set to close the week with a gain of 1.3 percent. Shares of J.P. Morgan Chase & Co slid 3.4 percent to $35.61 after the bank said fourth-quarter profit fell as the European debt crisis weighed on trading and corporate deal-making.