According to the official reports, U. S. markets fell on Friday in New York after credit rating agency Fitch's downgraded Spanish debt.

The downgrade from AAA to AA plus comes on the same day Spain's Parliament passed an austerity budget amendment by just one vote.

Because of fears that debt issues would spread across Europe, markets have already suffered through a dismal month. Greece and Portugal have also had bonds downgraded in May.

After Thursday's rally, markets were already lower on Friday. Incomes rose 0.4 percent in April, but consumer spending was unchanged from March, The Commerce Department said earlier.

Starting the month at 11,151.83 points, the Dow Jones industrial average, shed 122.36 points, off 1.19 percent to 10,136.63.

The Standard & Poor's 500 index, at 1,202.26 on May 3, lost 13.65 or 1.24 percent to 1,089.41.

Loosing 20.64 or 0.91 percent, the Nasdaq composite index, which started May at 2,498.74, went down to 2,257.04.

It was also reported that the benchmark 10-year U. S. treasury note rose 12/32 to yield 3.312 percent. (With Inputs from Agencies)