Key Highlights

  • The S&P 500 closed down 0.2% Friday to 7,785.76, but advanced 0.4% for the week, marking its third consecutive weekly gain.
  • The Nasdaq Composite fell 0.3% Friday to 26,729.16 but posted a third straight weekly gain, up 0.1% for the week.
  • More than 90% of S&P 500 companies have reported second-quarter results, with Earnings growth tracking around 50% from a year earlier, according to FactSet.
  • The Russell 2000 closed higher for a fourth consecutive session, its longest positive streak since June.

Benchmark Indexes Slip After Record-Setting Week

The S&P 500 fell 0.2% Friday to close at 7,785.76, following a week in which the index crossed 7,800 for the first time and reached an intraday record of 7,816.70. Despite the Friday pullback, the benchmark advanced 0.4% for the week, marking its third consecutive weekly gain. The Nasdaq Composite fell 0.3% Friday to 26,729.16, though it also posted a third straight weekly advance, up 0.1% for the week. The Dow Jones Industrial Average slipped 107.58 points, or 0.2%, to 53,732.41 Friday, closing 0.6% lower for the week.

Strong Earnings Season Continues to Support Market Levels

More than 90% of S&P 500 companies have reported second-quarter results, with earnings growth tracking around 50% from the year-earlier period, according to FactSet. One market strategist described Friday's pullback as consistent with a typical post-earnings-season "flattening out" pattern, suggesting the market could see similar consolidation through the remainder of August and September. Assuming earnings growth holds near current levels, oil prices remain above $80 amid the closure of the Strait of Hormuz, and the Federal Reserve keeps interest rates steady, some strategists anticipate the S&P 500 could reach 8,100 by year-end.

Weak Consumer Data Adds Uncertainty to Outlook

Investors weighed a weaker consumer picture Friday, with July retail sales showing an unexpected decline and consumer confidence falling in August, reversing improvements seen in June and July. Analysts said a single weak month of spending data does not necessarily signal broader economic deterioration, but becomes harder to dismiss alongside recent disappointing GDP and jobs figures. Some strategists noted that softer economic data could ease pressure on the Federal Reserve to raise interest rates, though they cautioned that sustained economic weakness would come at a steep cost if pursued as a means of avoiding a rate increase. The Russell 2000 closed higher for a fourth consecutive session Friday, up 0.5% on the day and 1.1% for the week, marking its longest positive streak since June.