Worst week for S&P 500, Nasdaq since May 2012 --- U.S. stocks fell sharply on Friday, with benchmark indexes falling for a third week in a row, as computer-chip manufacturers led the losses after Microchip Technology lowered its sales outlook. -- "With the Fed going away, and the slowdown in Europe, the market is trying to figure out are these valuations fair, that's what this whole week has been about," said JJ Kinahan, chief strategist at TD Ameritrade.. -- Equities fell further after Standard & Poor's downgraded its outlook for France to negative from stable. -- The CBOE Volatility Index, a measure of investor uncertainty, rose above 20 for the first time since early February, and spiked 13 percent to 21.24. -- "Adding insult to injury after the bell on Thursday was a revenue warning from the CEO at Microchip Technology," noted Andrew Wilkinson, chief market strategist at Interactive Brokers. -- "Investors may have to worry beyond Friday about the consequences of the Microchip warning," he added. --- After rising as much as 98 points in the early going, the Dow Jones Industrial Average dropped 115.15 points, or 0.7 percent, to 16,544.10, with Intel fronting blue-chip losses that extended to 21 of 30 components. Coca-Cola led gains. The Dow fell 2.7 percent from the week-ago close, and slipped into negative terrain for the year, down 0.2 percent from the end of 2013. -- Down 3.1 percent on the week, and up 3.1 percent for the year, the S&P 500 dropped 22.08 points, or 1.2 percent, to 1,906.13, with technology hardest hit and utilities faring best among its 10 major sectors. -- The Nasdaq declined 102.10 points, or 2.3 percent, to 4,276.24, leaving it off 2.3 percent on the week and up 2.4 percent on the year. -- For every share rising, nearly four fell on the New York Stock Exchange, where nearly 949 million shares traded. Composite volume cleared 4.5 billion. - Read More, CNBC, http://www.cnbc.com/id/102077671