NEW YORK, New York - American and global stock markets traded lower on Friday as U.S. Treasury and European bond yields rose. Towards the close however, the Nasdaq Composite managed to climb into the black, while the Standard and Poor's 500 managed to finish flat.

The dollar clawed back some ground after major falls over the past three days.

"We are now entering a period where the Federal Reserve will engage in a never-before-seen experiment: raising interest rates off zero and reducing the size of its balance sheet in the same year," Nicholas Colas, co-founder of DataTrek Research told Reuters Friday.

"The market is still left wondering what results will come from their decisions," he said.

The Dow Jones industrials dropped 201.81 points or 0.56 percent to close Friday at 35,911.81.

The Nasdaq Composite rose 86.95 points or 0.59 percent to 14, 893.75.

The Standard and Poor's 500 finished 3.82 points or 0.08 percent in front at 4,662.85.

The U.S. dollar traded modestly higher Friday. The euro rose to 1.1414 by the New York close. The British pound edged down to 1.3679. The Japanese yen fell to 114.18. The Swiss franc eased to 0.9136.

The Canadian dollar weakened to 1.2553. The Australian dollar declined to 0.7217. The New Zealand dollar dived to 0.6809.

The CAC 40 in Paris, France shed 0.81 percent. The Dax in Germany lost 0.93 percent. The FTSE 100 in London slipped 0.28 percent.

On Asian markets, in Tokyo, the Nikkei 225 finished Friday with a deficit of 364.85 points or 1.28 percent at 28,124.28.

The Australian All Ordinaries tumbled 80.40 points or 1.03 percent to close at 7,717.10.

The Hang Seng in Hong Kong shed 46.45 points or 0.18 percent to 24,383.32.

China's Shanghai Composite lost 34.00 points to 0.96 percent to 3,521.26.