New | Wall Street down Friday on stalemate in Greek talks

A setback in Greek debt talks pushed US and European shares lower on Friday, along with investor views that positive US data may accelerate the timing for a hike in interest rates.

Oil prices fell on concerns production may rise further.

The International Monetary Fund delegation left Greek debt negotiations on Friday because of "major differences" with Athens on the same day that EU officials held their first formal talks on the possibility of Greece defaulting.

"It’s largely the Greek situation again, and that’s been played out on a day-to-day basis where you had a huge rally followed by a decline predicated on whether they are coming closer or moving further from a resolution," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones industrial average fell 140.53 points, or 0.78 per cent, to 17,898.84, the S&P 500 lost 14.75 points, or 0.7 per cent, to 2,094.11 and the Nasdaq Composite dropped 31.41 points, or 0.62 per cent, to 5,051.10. The S&P and the Dow showed slight gains for the week while the Nasdaq fell slightly.

However, the darkening Greek outlook failed to fluster Prime Minister Alexis Tsipras, who holed up with his negotiators after proclaiming optimism at an open air concert.

The euro inched higher against the dollar after Tsipras’ comments even though equity and bond investors were sceptical.