Stocks Slide for the Week; Banks, Energy Fall Hard

After two positive weeks in a� row, stocks dropped this week, a sign that investors may be getting less optimistic about the situation in Europe.

The Dow fell just 2.4 points on Friday, but was down 318 points, or 2.6%, to 11,866 for the week. The S&P 500 fell 35.5 points, or 2.8% for the week.

European leaders helped boost the market last week by agreeing to the general outline of a deal that will institute new budget reforms and expand a European bailout fund. But comments by Angela Merkel earlier this week, and a lack of further action by the European Central Bank have made investors wary about the recovery in that region. In addition, Moody’s threw more doubt on the Euro zone by announcing that the agency will review credit ratings of European countries early next year for possible downgrade.

Bank stocks fell hard this week, with Bank of America (BAC) down 9.1%, and Citigroup (C) falling 9.5%.

Oil stocks also fell, as West Texas crude futures crossed back under $100 per barrel and kept falling. They ended the week at $93.53 per barrel, down 5.91% for the week. It was the worst week for crude prices since September.