(Updates with market moves at the end of the day, and other changes, if any.)
The S&P 500 retreated Friday from an all-time peak in the previous session, following downbeat retail sales and consumer sentiment reports, but still logged its third consecutive weekly gain.
The index fell 0.2% to close at 7,785.76. The Nasdaq Composite declined 0.3% to 26,729.16, snapping a two-day advance, while the Dow Jones Industrial Average edged down 0.2% to 53,732.41. Among sectors, healthcare led the laggards, while energy paced the gainers.
This week, the S&P 500 gained 0.4%, while the Nasdaq added 0.1%, both marking their third weekly advance in a row. The Dow lost 0.6% following two straight weeks of gains.
Retail sales in the US unexpectedly decreased last month, registering the largest monthly drop in more than a year, amid declines in spending on motor vehicles and at gas stations.
US consumer sentiment fell in August after two straight monthly gains amid continued inflation concerns, while year-ahead price growth expectations rose, preliminary results of a University of Michigan survey showed Friday.
The reports follow official data on Thursday that showed producer prices held steady last month, defying expectations for a monthly rise. Earlier in the week, the Bureau of Labor Statistics published benign consumer inflation data for July that lowered bets for a Federal Reserve interest-rate increase next month.
"American consumers took a breather last month, despite the tailwind from rising equity markets," Sal Guatieri, senior economist at BMO Capital Markets, said in a report, discussing the retail sales report. "This, together with a weaker jobs report and subdued core CPI inflation, raise the odds of the (Federal Open Market Committee) staying patient again in September."
Markets are currently pricing in a 67% probability that the Fed will keep its benchmark rate steady next month, with the remaining odds in favor of a 25-basis-point hike, according to the CME FedWatch tool.
Treasury yields were higher, with the 10-year yield rising 4.7 basis points to 4.69% and the two-year yield up 2.7 basis point at 4.17%.
West Texas Intermediate crude oil was up 1.3% at $82.32 a barrel in Friday late-afternoon trade, while Brent advanced 1.7% to $88.51. Both benchmarks were on track for weekly gains following two consecutive weekly declines.
In an interview with Newsmax, Treasury Secretary Scott Bessent said the US will continue its blockade of Iranian ports, according to CNBC.
"Crude continues to gyrate on headlines surrounding the Strait of Hormuz, with traders caught between expectations that an eventual agreement could release additional Gulf barrels and the reality that six months of disruption have left global inventories depleted," Saxo Bank said in a report on Friday.
Shares of Applied Materials (AMAT) slumped 5.1%, the third-steepest decline on the S&P 500, after the semiconductor-equipment manufacturer reported lower free cash flow for the first nine months of the fiscal year as capital expenditures climbed sharply.
Reddit (RDDT) jumped nearly 13%, with the social media platform set to join the S&P 500 on Tuesday.
Fox class B shares (FOX) rose 5.7%, among the best performers on the S&P 500, following a rating upgrade from Wells Fargo. Its class A shares (FOXA) advanced 5.5%.
Spot gold climbed 0.6% to $4,374.30 per troy ounce.
