US sharemarkets fell as ratings agency Fitch downgraded Spain's long-term sovereign debt rating, with the Dow losing over one percent on Friday to bring its monthly decline to nearly eight percent, its worst result for a May since 1940.

At the close of trading, the Dow Jones industrial average fell by 122.36 points, or 1.19 percent, to close at 10,136.63, while the broader S&P 500 index lost 13.65 points, or 1.24 percent, to close at 1,089.41.

The technology-based Nasdaq composite shed 20.64 points, or 0.91 percent, to close at 2,257.04.

The price of oil lost 58 US cents on the New York Mercantile Exchange to close at US$73.97 a barrel, while the price of gold gained 30 US cents to be worth US$1,212.20 an ounce on the COMEX index.

The US dollar gained against the euro and ended the day little changed against the yen.

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