US stocks closed lower on Friday as investors booked profits after a strong run that pushed major indexes to record levels earlier in the week. The S&P 500 slipped 0.29% to finish at 6,449.80, while the Nasdaq Composite shed 0.40% to close at 21,622.98. The Dow Jones Industrial Average bucked the trend, rising 34.86 points, or 0.08%, to 44,946.12. The Dow’s modest gain was driven by a 12% surge in UnitedHealth, though the index still retreated from an intraday record.
Chip stocks and consumer sentiment weigh
Technology shares dragged on the broader market, with chipmakers leading the declines. Applied Materials tumbled 14%, pulling the VanEck Semiconductor ETF down 2%, while Nvidia slipped nearly 1%. Sentiment was further dampened by fresh data from the University of Michigan showing consumer confidence fell to 58.6 in August from 61.7 a month earlier, as worries over inflation persisted.
Weekly gains remain intact
Despite Friday’s pullback, the major averages logged another positive week. The Dow gained 1.74%, its best weekly performance of the summer, while the S&P 500 and Nasdaq rose 0.94% and 0.81% respectively. The advance was underpinned by encouraging inflation data that reinforced expectations for a Federal Reserve rate cut in September.
Retail sales signal resilience
Economic data also pointed to continued resilience in household spending. July retail sales rose 0.5%, in line with forecasts, while sales excluding autos increased 0.3%, also matching expectations. The figures reinforced views that consumer demand remains firm despite lingering inflationary pressures.
ASX poised to ease after record run
Closer to home, the Australian sharemarket is expected to start the week lower after a remarkable streak of record highs. Futures point to a 0.6% decline for the S&P/ASX 200 at Monday’s open. On Friday, the benchmark closed at an all-time peak of 8,938.6, capping five consecutive sessions of record closes—an achievement analysts described as unprecedented over the past decade.
Earnings season in focus
The rally has been buoyed by a strong start to reporting season, with around one-quarter of companies so far beating earnings expectations and just 19% falling short, according to AMP. But analysts warn the picture could soften as more results roll in. Heavyweights including BHP, Woodside Energy, Santos and Transurban are due to report this week, setting the tone for the next phase of the season. Profit forecasts for 2026 have so far been trimmed only modestly, down 0.1% compared with the average 0.8% downgrade seen in past seasons.
