Shares of energy companies fell as investors backed out of bets on a rapid economic recovery.
Oil futures recouped some of their recent losses as further weakness in the dollar and U.S.-China geopolitical concerns ahead of the weekend spurred buying.
Beijing ordered the shutdown of the U.S. Consulate in the city of Chengdu, describing the move as a "legitimate and necessary response" after the U.S. this week ordered Beijing to vacate its consulate in Houston.
Schlumberger, the world's largest oil-field services company, rose slightly, but remained near multiyear lows after it took as $3.7 billion charge to account for the devastated oil market, and warned it would cut about 21,000 jobs to reflect the sharp depletion in demand from oil producers still reeling from the April crash in prices.
Oil-services companies saw a rapid and pronounced hit to their revenue from the oil crash.
Schlumberger's largest rival Halliburton, which reported earnings earlier in the season, saw revenue fall by 46% in the quarter ended June 30 compared with a year earlier, while Schlumberger and Baker Hughes saw drops of 35% and 21%, respectively.
The number of rigs drilling for oil in the U.S. rose by one in the past week to 181, according to oil-field services company Baker Hughes.
Write to Rob Curran at rob.curran@dowjones.com
