Stocks drop as Brexit overhang persists

U.S. stocks logged losses Friday as Wall Street's attention continues to be focused on next week's closely watched vote in Great Britain on whether to leave the European Union.

The Dow Jones industrial average, which snapped a five-session losing streak Thursday, closed down 58 points, or 0.3, to 17,675 and lost 1.0% for the week. The broader Standard & Poor's 500 stock index fell 0.3% and lost 1.2% for the week. The Nasdaq composite dropped 0.9%, giving up 1.9% for the week.

The market's continued focus and uncertainty pertaining to the June 23rd Brexit vote remains a main topic in Wall Street research reports and is likely to continue. If the so-called "Leave" campaign is successful and Britain opts out of the 28-nation E.U. it is expected to hurt investor confidence, spark waves of investor uncertainty and drag down economic growth in the U.K. and Europe, market experts say.

In a report, titled, "Sitting tight through the ebb and flow into Brexit," Robert Sluymer, a technical analyst at RBC Capital Markets, reiterated that "Brexit remains a very real but unforecastable wildcard."

A decline in the value of the U.S. dollar vs. foreign currencies provided a big lift to oil prices, providing a lift to many U.S. energy stocks, such as oilfield services provider Halliburton, which surged more than 2%.

U.S.-produced crude, which had closed lower the first four days of the week, settled up Friday by nearly 4% to $47.98 per barrel, trimming its losses for the week from nearly 6% at Thursday's close to -2.2% at week's end.

Stocks in Asia and Europe were in rebound mode Friday, as there is a sense among investors that a referendum vote to leave the E.U. is less likely following the suspension of Brexit campaigning following the murder of a British lawmaker Thursday. Whether the odds of a Brexit have indeed widened since the murder of Joe Cox remains to be seen.

Jo Cox murder suspect had ties to far-right in U.S.

"After (Thursday's) tragic murder of Jo Cox, many are hasty to apply narrative to these markets, something we won't do," Paul Hickey, co-founder of Bespoke Investment Group, told clients in an early-morning note. "Our thoughts are with her family. (But) the reality is that Brexit risk has dropped in the last 24 hours."

Stocks in Japan rallied 1.1%, after a very difficult week that saw stocks there fall 6% after investors were disappointed with the Bank of Japan's decision not to inject more stimulus into the ailing Japaniese economy. The lack of fresh stimulus sent the yen skyrocketing, which hurt shares of Japan's exporters.

Stocks were higher in Europe as well, with the broad Stoxx Europe 600 rising 1.4%.

In economic news, May housing starts in the U.S. fell but still topped estimates. Housing starts fell 0.3% to a seasonlly adjusted 1.164 million units, which topped the 1.150 million units economists' had forecast.

"Residential housing construction has hit a ceiling which does not bode well for future economic growth as new homes are tied to consumer purchases of appliances, carpeting, TVs, the works," Chris Rupkey, managing director and chief financial economist at MUFG Union Bank told clients in a note. "