Stocks slid Friday as traders, wary of the risks posed by Europe's debt crisis, closed out positions ahead of the long holiday weekend.
Spain's deteriorating finances and a possible Greek exit from the euro weighed on investor sentiment, overshadowing an upbeat report on U.S. consumer confidence.
The euro plumbed a fresh 22-month low against the U.S. dollar after the president of Catalonia, Spain's wealthiest region, said it is running out of options for refinancing more than 13 billion euros in debt that comes due this year.
The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment rose to 79.3 from 76.4 in April, topping forecasts for 77.8 and an initial May reading of the same.
"Unfortunately, consumer confidence is still extremely vulnerable to a reversal, as occurred in the past two years," survey director Richard Curtin said in a statement.
Facebook's shares fell again, one week since its ballyhooed debut last Friday.
Reuters contributed to this report.