The S&P 500 notched its third straight weekly gain Friday, even as the major U.S. stock indexes ended the day 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 money in August, particularly on cars.
An easing of tensions in the costly trade war between the U.S. and China bolstered the market 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 ahead 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 index slipped 2.18 points, or 0.1%, to 3,007.39. With a gain of about 1% this week, the benchmark S&P 500 moved closer to its all-time high of 3,025.86 set on July 26.
The Dow Jones Industrial Average posted its eighth straight gain, rising 37.07 points, or 0.1%, to 27,219.52.
The technology 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 Russell 2000 climbed 4.9%. The smaller, U.S.-focused companies in the Russell are seen as more insulated from the