The markets dipped into negative territory in the final minutes of trading Friday, dragged down by concerns for the U.S.’s AAA credit rating and very low volume ahead of the Memorial Day weekend.

Today's Markets

The Dow Jones Industrial Average closed down 14.81 points, or 0.18%, to 8,277.32, the S&P 500 lost 0.21 points, or 0.02%, to 888.12 and the Nasdaq Composite slipped 3.24 points, or 0.19%, to 1692.01. The consumer-friendly FOX 50 lost 1.73 points, or 0.26%, to 653.45.

Still, the markets ended the week with minor gains following last week's plunge. Stocks gave back much of Monday's 200-point surge amid worries all week about the recession and whether or not Washington's efforts to end the downturn will force a downgrade of America's perfect credit rating.

Friday’s session predictably featured light trading volume as no major economic or earnings reports were released and some traders skipped town early for Memorial Day weekend.

“It’s a tough day before a three-day weekend to make any dramatic predictions one way or the other,” NYSE trader Ted Weisberg of Seaport Securities told FOX Business.

The Dow was initially led higher by defensive stocks like Kraft (KFT) and McDonald's (MCD). On the other hand, General Motors (GM) and Bank of America (BAC) were the biggest percentage losers on the index.

Energy stocks like Chevron (CVX: 64.4498, 0.0298, 0.05%) also provided the markets with some early strength as crude oil bounced off its lows. Crude was recently trading up 20 cents per barrel, or 0.20%, at $61.25 per barrel.

But growing credit ratings fears proved too much, pushing the U.S. dollar down to a 2009 low and the yield on the 10-year Treasury note to its highest level of the year. Boosted by the sinking greenback, gold hit a two-month high of $959.90 per ounce, up $8 on the day.

Ratings company Moody’s addressed the worries, saying late Thursday the U.S. rating remains at “AAA” and is considered stable, according to Reuters. Moody’s said it is comfortable with the perfect rating but conceded it's “not guaranteed forever” given long-term pressures.

Credit ratings fears began on Thursday after Standard & Poor’s warned it may need to cut the U.K.’s “AAA” rating due to its heavy debt load, sending London's FTSE 100 diving nearly 3% and the Dow off by triple digits.

"I do think there is a positive here though; this is a market that is clearly telling Washington to get its financial spending under control," Peter Kenny, managing director at Knight Capital Markets, wrote in a note. "I sincerely hope that the conversation regarding credit worthiness is being heard in Washington -- not just around the kitchen table."

Meanwhile, the Federal Deposit Insurance Corporation announced the closure of Florida-based BankUnited after the markets closed Thursday. The failure, which will cost the depleted FDIC insurance fund $4.9 billion, is the largest of the year and second-largest of the crisis, exceeded only by IndyMac’s collapse. Regulators said BankUnited, which had $12.8 billion in assets, was “critically undercapitalized.”

The latest bank failure didn't appear to significantly weigh on market sentiment Friday even though it serves as a reminder of the challenges facing the FDIC amid the most serious financial crisis since the Great Depression.

Corporate Movers

General Motors (GM) saw its shares dive even after Reuters reported the White House, contrary to recent reports, has no plans to steer the troubled auto maker into bankruptcy next week. The outcome of GM’s restructuring efforts may not be known until a June 1 deadline, the wire service reported.

Sears (SHLD) reported a surprise quarterly profit late Thursday thanks to heavy cost-cutting. The retailer said it earned 38 cents per share on an adjusted-basis, blowing expectations for a loss of 88 cents per share out of the water.

American International Group (AIG) Chairman and CEO Edward Liddy said late Thursday he plans to step down after a replacement is found. Liddy, who was grilled earlier this year about bonus payments at the bailed-out insurer, recommended separating the CEO and chairman positions.

Johnson & Johnson (JNJ) unveiled plans to buy biopharmaceutical cancer treatment company Cougar Biotechnology (CGRB) for about $1 billion in cash. The offer values Cougar at $43 per share, up from the company’s closing price of $36.98 on Thursday.

GMAC LLC received a $7.5 billion cash injection from the U.S. on Thursday, the Treasury Department confirmed. The U.S. will now hold at least a 35.4% stake in the auto finance company but could soon become the majority owner. GMAC, which is owned in part by Chrysler parent Cerberus, was ordered to raise $11.5 billion after its stress test.

Playboy Enterprises (PLA) is being shopped for $300 million but potential suitors like Apollo Capital Partners and Providence Equity Partners haven't shown interest, the New York Post reported. Hugh Heffner's adult entertainment company has yet to find a buyer for its $300 million asking price, which is three times as much as the company's market cap, the paper reported.

Global Markets

European markets bounced back from Thursday's plunge as London's FTSE 100 jumped 0.46% to 4365.29, Germany's DAX rose 0.37% to 4918.75 and France's CAC 40 rallied 0.33% 3227.97. All three indexes ended in the green for the week.

Asian markets didn't join the rally as Japan's Nikkei 225 slumped 0.41% to 9225.81 and Hong Kong's Hang Seng tumbled 0.80% to 1702.52.