The S&P 500 experienced a decline on Friday following its achievement of a record high, as investors opted to realize some profits after a robust week. The broad market index experienced a decline of approximately 0.3% in its most recent assessment. The Nasdaq Composite experienced a decline of 0.5%. The Dow Jones Industrial Average exhibited a positive performance, increasing by 117 points, or 0.3%, largely driven by a notable 14% surge in UnitedHealth. However, it was significantly below its all-time high achieved earlier in the day. The market experienced a downturn on Friday, influenced by a decrease in chip stocks and disappointing consumer sentiment data. Applied Materials experienced a decline of 14%, which significantly impacted the VanEck Semiconductor ETF, resulting in a decrease of 2%. Nvidia experienced a decline of 2%.

In the latest data release, the University of Michigan’s consumer sentiment index has declined to 58.6 in August, down from 61.7 in the previous month, reflecting growing concerns regarding inflationary pressures. The major averages exhibited resilience throughout the week, maintaining a stable position. The Dow exhibited superior performance, increasing by 2%. The S&P 500 and Nasdaq experienced an increase exceeding 1% for the week, driven by recent consumer inflation data that has bolstered expectations for a potential rate cut by the Federal Reserve in the upcoming month.

July’s retail sales data, released on Friday morning, indicated a robust outlook for the U.S. consumer. Retail sales experienced an increase of 0.5% last month, aligning with the projections set forth by the Dow Jones consensus. Retail sales, when excluding automobiles, experienced a growth of 0.3%, aligning with expectations. “The AI boom and the necessary Fed rate cuts are bolstering the market, so we do not anticipate a tradable pullback in the S&P, despite the unfavorable seasonality of August and September,” stated Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors. “We’re actually kind of grinding higher still.”