U.S. stocks closed lower on Friday following the Nasdaq's record high as investors eyed developments in the Greece debt negotiations amid quarterly options expirations. ( Tweet This )
The major indices ended near their lows of the day. The Dow Jones industrial average extended losses to close about 100 points lower, with Travelers Cos. weighing on the index with a decline of about 2 percent.
It's the "binary effects of options expiration and concern over Greece," said Art Hogan, chief market strategist at Wunderlich Securities.
Friday marked quadruple witching in which volatility often increases in the last hour of trade due to the expiration of options and futures contracts. The major averages remain on track for weekly gains of about 1 percent or more.
At an emergency summit on Monday, euro zone officials are expected to discuss how to handle a Greek default if no new Greek reform proposals arrive, Reuters reported. Athens has said without further aid, it will be unable to make a 1.5 billion euro ($1.7 billion) debt payment to the International Monetary Fund due on June 30.
Meanwhile, large deposit outflows from Greece have raised concerns that Athens may have to implement capital controls. The European Central Bank expanded emergency funding for Greek banks as savers pulled out 1.2 billion euros in a single day on Friday, bankers said in a Reuters report, but Prime Minister Alexis Tsipras insisted the nation's future in the euro was secure.
"Short of any resolution to the Greece situation—which I don't think is going to happen—we'll kind of waffle here," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
Energy stocks fell more than half a percent as one of the greatest decliners in the S&P 500 as oil traded lower on concerns about Greece and increased shale oil supply.
"It's a little bit of a consolidation after the gains yesterday," said Paul Nolte, senior portfolio manager at Kingsview Asset Management. "We're still data-dependent and we're going to postpone any rate increase to later this year."
Stocks rallied about 1 percent on Thursday as investors cheered a dovish Federal Reserve statement and remained hopeful of a deal on Greece.
The Nasdaq Composite closed at a record, surpassing its all-time high set in intraday trade during the tech bubble. The Russell 2000 and S&P midcap 400 index also set records on Thursday and attempted to advance on Friday.
"We think the SPX will follow their lead, with a breakout above minor/final resistance at the May high likely in the days ahead on improved short-term momentum," said BTIG Chief Technical Strategist Katie Stockton. She's watching a support level of 2,106 and resistance at 2,124. The index closed at 2,109.76 on Friday.
The S&P 500 had its best week since April 24. The index posted weekly gains of 0.75 percent, marking the eighth straight week the S&P has stayed within a 1 percent gain or loss. The last time a similar streak occurred was from November 1993 to January 1994.