US stocks: US markets trade muted as investors weigh Middle East tensions, data

US stock indexes were little changed amid volatility on Friday, a day after the S&P 500 closed at a record high, as investors mointored retail sales data and developments in the Middle East, Reuters reported.

Meta and Alphabet lifted the communication services sector by 0.5%, while mixed trading in chip stocks kept the S&P 500 and Nasdaq volatile. Applied Materials fell 4% despite an upbeat revenue forecast. Energy gained 1.6%, while miners and industrial stocks rose about 0.5% each.

“It's good to see an expansion in the markets here with broadening out, not just hiding out in hyperscalers like Microsoft and Nvidia,” Bob Lang, founder and chief strategist at Explosive Options, told Reuters.


Declines in Amgen and Johnson & Johnson weighed on the Dow.

The Dow Jones Industrial Average was down 21.14 points, or 0.04%, at 53,818.85. The S&P 500 rose 8.66 points, or 0.11%, to 7,807.65, while the Nasdaq Composite gained 17.78 points, or 0.07%, to 26,822.61.

Investors also assessed weaker-than-expected retail sales data for July. Sales had risen an unrevised 0.2% in June, the Commerce Department’s Census Bureau said.

“If they (the Fed) raise rates at the next meeting, it's not going to be a horrible thing ... If they do not change policy, it means that they have confidence that inflation trends are moving in the right direction,” Lang added.

The retail sales figures followed mild inflation data earlier in the week that eased concerns about a Federal Reserve rate hike in September.

The S&P 500 and Nasdaq appeared to be heading for a third consecutive weekly gain, their longest winning streak since early April.

The University of Michigan’s preliminary consumer sentiment index stood at 51 in August, below the 54.5 forecast of economists polled by Reuters.

Middle East tensions weighed on sentiment as traffic through the Strait of Hormuz nearly halted following fresh attacks. The US said it could maintain its naval blockade of Iran indefinitely.

Workday fell 4.4% on reports of takeover talks with Silver Lake, while Reddit surged nearly 15% ahead of its inclusion in the S&P 500 on August 18.

Drone stocks also advanced after President Donald Trump said late on Thursday that he would impose tariffs on imports of drones and their components. Red Cat jumped 7%, while Unusual Machines gained 14%.

Advancing stocks outnumbered decliners by 1.45 to 1 on the NYSE and 1.02 to 1 on the Nasdaq. The S&P 500 recorded nine new 52-week highs and one new low, while the Nasdaq Composite posted 49 new highs and 32 new lows.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)