NEW YORK — Wall Street finished a disappointing week lower yesterday as a sharp drop in oil prices failed to ease worries about declining consumer confidence.

Crude oil futures slid from their record highs earlier this week as it appeared Hurricane Katrina was unlikely to disrupt Gulf of Mexico refineries. A barrel of light crude settled at $66.13, down $1.36, on the New York Mercantile Exchange.

The Dow Jones industrial average declined 53.34, or 0.51 percent, to 10,397.29, the index's lowest close in more than seven weeks. The Standard & Poor's 500 index fell 7.29, or 0.6 percent, to 1,205.10, and the Nasdaq composite index dropped 13.60, or 0.64 percent, to 2,120.77.

For the week, the Dow lost 1.53 percent, the S&P dropped 1.2 percent and the Nasdaq fell 0.69 percent.

Wall Street was rattled after the University of Michigan reported August's consumer sentiment index at 89.1, down from a July reading of 96.5 and well below expectations of 92.5.

Federal Reserve Chairman Alan Greenspan gave a grim outlook for the U.S. economy as it nears the end of a period of sustained low interest rates, saying that while rising stock and home prices have driven spending in recent years, the perceived wealth could evaporate in the face of a rapid downturn.

Declining issues outpaced advancers by more than 11 to 5 on the New York Stock Exchange, where consolidated volume of 1.2 billion shares was down from 1.58 billion shares Thursday.

The Russell 2000 index of smaller companies fell 9.06, or 1.38 percent, to 648.64.