The S&P 500 slipped from its Thursday record high on Friday as chipmaker losses, rising oil prices and Middle East tensions offset a third straight weekly gain. The small-cap Russell 2000 bucked the pullback to close at a fresh record.
S&P 500 retreats from record close
The S&P 500 declined 0.17% to end the session at 7,785.76 points on Friday. The Nasdaq fell 0.28% to 26,729.16 points, while the Dow Jones Industrial Average lost 0.20% to close at 53,732.41 points.
Even so, advancing issues outnumbered decliners by a 1.1-to-1 ratio. The S&P 500 posted 15 new highs against just one new low. Volume stayed light, with 9.6 billion shares changing hands versus a 17.4 billion average over the previous 20 sessions.
Chipmakers weigh on the index
Applied Materials fell 5.1% after its upbeat quarterly forecast failed to impress investors, even though the stock has doubled in 2026 on demand tied to the buildout of AI data centers. Broadcom dropped 5.9% and Intel lost 2% as investors grew nervous about high valuations across AI-related stocks.
Workday dipped 3.8%, giving back part of Thursday's 18% surge that followed a report that Silver Lake was in talks to acquire the software firm. Reddit surged almost 13% after being named a new addition to the S&P 500, effective August 18.
Oil and economic data add pressure
Transit through the Strait of Hormuz appeared to be at a near standstill after two more ships were attacked there, and the United States said it could maintain a naval blockade of Iran indefinitely. The S&P 500 energy index rallied 1.4% as oil prices climbed.
July retail sales came in weaker than expected, following an unrevised 0.2% gain in June. The University of Michigan's preliminary consumer sentiment reading came in at 51 in August, below expectations of 54.5. The S&P 500's third consecutive weekly gain marked its longest winning streak since early April, helped by strong quarterly earnings and reduced concerns about rate hikes. That easing worry around further interest rate increases has supported risk appetite even as Friday's session pulled back.
Russell 2000 bucks the pullback
Despite Friday's retreat, the small-cap Russell 2000 closed at a fresh record, adding 0.51% on the day. For the week, the Russell 2000 gained 1.11%, outpacing the S&P 500's own weekly advance and pointing to broader participation beyond the largest companies.
Sources: Investing.com, InvestingLive
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