The Dow Jones Industrial Average weathered its second straight loss of more than 100 points on Friday as investors became pessimistic about the impact of oil prices near $60 a barrel.

The Dow Jones Industrial Average fell 123.60, or 1.2 percent, to 10,297.84, after falling more than 166 points the previous session. The Standard & Poor’s 500 Index dropped 9.16, or 0.8 percent, to 1,191.57. The Nasdaq Composite Index lost 17.39, or 0.8 percent, to 2,053.27.

Oil prices briefly touched $60 for a second day on Friday as dealers worried that continued strong demand growth would strain global production capacity. U.S. crude futures traded up 42 cents to $59.85 a barrel, having earlier reached $60 to match Thursday’s record on the New York Mercantile Exchange.

Among local companies, Hi Shear Technology Corp. gained 3.6 percent to $4.05 after the Torrance-based mechanical and electronic products company announced that it was awarded a $3.5 million Navy contract to manufacture, test and deliver analog recovery sequencers. The sequencers are on the pilots’ seats of advanced fighter aircraft. Deliveries are expected to begin in March 2006.

Shares of Semtech Corp. fell 2.7 percent to $17.47 after the Camarillo-based semiconductor company said it completed the acquisition of Xemics SA, a developer of digital integrated circuits. Xemics was acquired by Semtech International AG, Semtech’s Swiss subsidiary. Semtech announced plans to acquire Xemicx on June 20.

And Mattel Inc. lost 3.4 percent to $17.69 after the El Segundo-based company’s stock was downgraded to “market perform” from “outperform” by analyst Anthony Gikas at Piper Jaffray & Co. The price target was set at $20 per share.