(AP) — The S&P 500 notched its third straight weekly gain Friday, while other U.S. indexes ended mostly lower.
A slide in technology stocks, along with losses in consumer-focused and real estate companies, offset solid gains elsewhere in the market, including big Wall Street banks and industrial stocks.
Bond yields rose sharply after the government reported that Americans kept spending in August, particularly on cars.
Easing tensions in the U.S.-China trade war bolstered markets this week, renewing hope among investors that a new round of negotiations slated to begin next month may yield some progress.
Investors are now looking to next week, when the Federal Reserve is expected to announce another interest rate cut. The central bank lowered its benchmark interest rate in July by a quarter point, its first cut in a decade, in a bid to help maintain U.S. economic growth.
“When you have a run like we had, the market tends to pull back,” said Quincy Krosby, chief market strategist at Prudential Financial. “Going into the Fed meeting next week, there may be a little bit of caution.”
The S&P 500 slipped 2.18 points, or 0.1%, to 3,007.39. With a gain of about 1% this week, the S&P moved closer to its all-time high of 3,025.86, set July 26.
The Dow Jones industrial average posted its eighth straight gain, rising 37.07 points, or 0.1%, to 27,219.52. The tech heavy Nasdaq fell 17.75 points, or 0.2%, to 8,176.71.
The Russell 2000 index of smaller-company stocks gained 3.07 points, or 0.2%, to 1,578.14. Smaller-company stocks were the big winners for the week as the index climbed 4.9%. Its smaller, U.S.-focused companies are seen as insulated from the volatility of the trade war.
Investors’ renewed optimism on trade is a marked change from August, when increasingly damaging retaliatory moves by the U.S. and China threatened to slow global growth and prompt a recession.
Markets responded positively to the European Central Bank delivering a blast of stimulus Thursday in the face of sputtering growth and uncertainties around trade and Brexit. Major indexes in Europe moved broadly higher. Asian stocks finished with broad gains.
The U.S. economy looks far sturdier than Europe’s, though recent economic data has been mixed. On Friday, the Commerce Department’s retail sales report beat forecasts but showed that consumers are becoming more cautious. The increase came from auto sales, without which spending was flat for the first time since February.
Bond yields rose sharply Friday following the retail sales report. The yield on the 10-year Treasury rose to 1.90% from 1.79% late Thursday. Bond yields’ steady growth over the week have buoyed banks. JPMorgan is up 6.8% for the week, and Bank of America has gained 8.8%, better than the broader market.
The decline in tech stocks marked a reversal from Thursday, when the sector led a broad rally. Apple and Broadcom weighed things down the most. Apple, among several big tech companies being asked for documents as part of a Congressional antitrust investigation, slid 1.9%.