Stocks faded in the final hour of trading to close mixed Friday, with major indexes logging a second weekly decline, pressured by news of JPMorgan's trading loss and amid ongoing worries over the euro zone.

The blue-chip index logged its biggest weekly drop this year.

The Dow Jones Industrial Average slipped 34.44 points, or 0.27 percent, to close at 12,820.60. JPMorgan saw its biggest selloff in almost 9 months, while Verizon gained.

The S&P 500 erased 4.60 points, or 0.34 percent, to finish at 1,353.39. The Nasdaq squeezed out a gain of 0.18 points, or 0.01 percent, to end at 2,933.82 points. The CBOE Volatility Index, widely considered the best gauge of fear in the market, ended near 20.

For the week, the Dow tumbled 1.67 percent, the S&P 500 fell 1.15 percent, and the Nasdaq dipped 0.76 percent. Cisco was the biggest weekly laggard on the Dow, while Disney rallied.

Among the key S&P sectors, materials led the weekly decliners, while telecoms finished higher.

Stocks got a lift earlier in the session following a report that consumer sentiment rose to its highest level since 2008 in May.