The Dow Jones industrial average (INDU) dropped 74 points, or 0.6%, the S&P 500 (SPX) slipped 2 points, or 0.2%. The Nasdaq (COMP) managed to gain ground, adding 11 points, or 0.4%.
Friday's slump came as investors reacted to the government's first reading on fourth-quarter gross domestic product. The United States economy picked up speed at the end of 2011, growing at an annual rate of 2.8%, as consumers increased their spending. But the data fell short of the 3.2% forecast, based on a consensus of economists surveyed by Briefing.com.
While the worse-than-expected figure is disheartening, "the real disappointment is in the details" of the report, said Mark Chandler, global head of currency at Brown Brothers Harriman. Inventories rose during the quarter, accounting for a large part of the growth, but consumption growth, a measure of demand, was weak.
Investors had been hoping for news that would back up growing optimism about the nation's economic recovery. Instead, the news seemed to jive with the Federal Reserve's lower outlook for the economy.
Anxiety also continues to loom over Greece's ongoing negotiations with private-sector creditors in an attempt to reduce its debt burden. Without an agreement, the country jeopardizes its access to bailout funds and might not be able to make a €14 billion debt payment that's due March 20.
The dollar fell against the euro, the British pound and the Japanese yen. Oil for March delivery edged down 14 cents to settle at $99.56 a barrel. Gold futures for February delivery rose $5.50 to $1,732.20 an ounce.
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