The S&P 500 Index extended a weekly decline as traders weighed a conflict between the White House and Federal Reserve over emergency lending programs along with assurances that the government has plenty of room to help the economy.

The benchmark equity gauge slumped in the wake of the disagreement over releasing government funds to further shore up growth, even as Treasury Secretary Steven Mnuchin said he will try to revive stimulus talks with congressional Democrats. Pfizer Inc. rose after filing for emergency approval of its COVID-19 vaccine. Gilead Sciences Inc. fell after authorities advised against using its remdesivir drug to treat COVID-19.

The Stoxx Europe 600 Index posted its third week of gains -- the best streak since July -- amid a rotation into economically sensitive sectors. Mining and energy firms led the gauge higher Friday.

Global stocks hit a record Monday, but have eased off the highs in a choppy week of trading, with investors now analyzing the rare show of discord between Mnuchin and Fed Chair Jerome Powell that erupted amid a resurgence of virus cases and with months to go before a vaccine is widely available. The S&P 500 posted a 0.8 per cent weekly decline.

“This public spat between the Fed and the Treasury is not a very good sign for the markets,” said John Praveen, managing director at QMA. “It kind of casts a shadow on market confidence.”

Mnuchin said lawmakers should redirect unspent stimulus funding, including money he’s pulling back from the Fed. But the Fed pushed back, saying the programs served a vital role.

In other markets, Asian equities climbed. Precious metals gained. Bitcoin advanced past US$18,500.

These are the main moves in markets:

Stocks

• The S&P 500 index fell 0.7 per cent as of 4 p.m. in New York.
• The Stoxx Europe 600 index gained 0.5 per cent.
• The MSCI Asia Pacific Index rose 0.5 per cent.
• The MSCI Emerging Market Index advanced 0.7 per cent.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro slipped 0.1 per cent to US$1.1859.
• The pound rose 0.2 per cent to US$1.3288.
• The yen slipped 0.1 per cent to 103.82 per dollar.

Bonds

• The yield on 10-year Treasuries was little changed at 0.83 per cent.
• Germany’s 10-year yield dipped one basis point to -0.585 per cent.
• The U.K.’s 10-year yield fell two basis points to 0.3 per cent.

Commodities

• West Texas Intermediate crude rose 1 per cent to US$42.15 a barrel.
• Gold rose 0.4 per cent to US$1,873.21 an ounce.

--With assistance from Todd White, Gregor Stuart Hunter, Joanna Ossinger and Robert Brand.