Egypt unrest unnerves the markets

NEW YORK - Escalating protests in Egypt jarred world financial markets Friday. Stocks fell while the dollar, Treasurys, and gold rose as investors sought to reduce their exposure to risk.

The Egyptian military was deployed after riot police fired tear gas, rubber bullets, and used water cannons to disperse crowds that had gathered in the largest challenge to President Hosni Mubarak's 29-year rule.

The dollar rose 0.5 percent against an index of six other currencies as investors sought safety. Gold rose 1.7 percent to settle at $1,341.70 and crude oil rose 4.3 percent to $89.34 a barrel.

The Egyptian stock market isn't open on Fridays. The market's main index fell 10.5 percent Thursday.

The MSCI World Market index, the broadest measure of the world's stock markets, slumped 1.4 percent.

Of the 30 large company stocks that make up the Dow, 28 fell. The two exceptions, Procter & Gamble and DuPont, were flat.

The Dow fell 166.13 points, or 1.39 percent, to close at 11,823.70. That's the worst one-day drop since November.

The Dow lost 0.4 percent for the week after eight straight weeks of gains.

The Standard & Poor's 500 index fell 23.20, or 1.8 percent, to 1,276.34. All 10 company groups within the S&P index fell. The S&P fell 0.5 percent for the week.

The Nasdaq composite fell 68.39, or 2.5 percent, to 2,686.89. The Nasdaq lost 0.1 percent for the week.

Disappointing earnings reports also rattled investors, said Brian Wenzinger, a portfolio manager at Aronson Johnson Ortiz in Philadelphia. "Some companies like Apple are doing well, but the bulk are not being too optimistic."