Apple and the iShares Nasdaq Biotechnology ETF (IBB) ended lower to weigh on the Nasdaq composite.
The Dow transports closed 1.58 percent lower, with Kansas City Southern leading nearly all constituents lower. The firm reported a year-over-year decline in third-quarter revenue due to headwinds from currency and low U.S. fuel prices.
Transports ended the week down 2.1 percent, their first negative week in three.
Energy recovered losses to close mildly higher, with industrials the only declining S&P 500 sector in the close.
"I think crude settling higher puts a bit of a lift," said Dan Veru, chief investment officer at Palisade Capital Management.
"When oil is up it feels like we're really not going into a deflationary spiral," he said.
Crude oil futures settled up 88 cents, or 1.9 percent, at $47.26 a barrel after Baker Hughes data showed U.S. rigs falling for the seventh straight week. However, oil fell 4.78 percent for the week, its worst since Aug. 21.
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"After a very big day yesterday I think that was an exhaustion of a lot of the short covering," said Lance Roberts, head of Streettalklive.com. He noted Friday's session could be "very choppy and volatile" amid options expirations and ahead of the weekend.
"Yesterday the data was so weak the market immediately cued in to the fact that the Fed's not going to raise at all until 2016," he said.
Stocks rallied Thursday, with the Dow up more than 200 points and the S&P 500 closing at its highest level since Aug. 20.
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"We think short-term overbought conditions can be sustained for a few days, potentially allowing for a test of the 200-day moving average before a significant pullback unfolds," Katie Stockton, chief technical strategist at BTIG, said in a note.
However, she said a technical indicator suggested a lower bias to Friday's session.
In economic news, industrial production declined 0.2 percent in September, with capacity utilization at 77.5 percent.
The preliminary read on October consumer sentiment came in at 92.1. JOLTS showed 5.37 million job openings for August.
"We're sort of moving sideways on the sentiment front," said Ryan Sweet, director of real-time economics at Moody's Analytics.
"The fact that it bounced back in October — seems that it's a temporary issue," he said.
Treasury yields traded in a range, with the 10-year yield at 2.03 percent and the 2-year yield at 0.60 percent.
"It looks like the Treasury market is certainly in a pretty narrow range, which is not surprising given the increasing consensus on the Fed (raising rates later)," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott.
The U.S. dollar traded mildly higher against major world currencies, with the euro near $1.135 and the yen at 119.48 yen against the greenback.