Dow Jones outperforms on UnitedHealth surge
NEW YORK: The S&P 500 edged lower on Friday, taking a breather after scaling an all-time peak earlier in the session, as investors cashed in on gains following a robust week.
The broad market index was last down about 0.2%. The Nasdaq Composite declined 0.4%. The Dow Jones Industrial Average bucked the trend, adding 66 points, or 0.2%, propelled by a 14% surge in UnitedHealth. Despite the positive movement, the Dow fell short of its intraday record high.
A sell-off in chipmakers and disappointing consumer sentiment data weighed on the market. Applied Materials plummeted 14%, dragging the VanEck Semiconductor ETF (SMH) down by 2%. Nvidia also saw a 2% decrease.
Data from the University of Michigan revealed a dip in consumer sentiment, falling to 58.6 in August from 61.7 in the prior month, fueled by persistent inflation concerns.
However, the major averages remained firmly in positive territory for the week. The Dow led the pack with a 2% gain, while the S&P 500 and Nasdaq each added 1% week-to-date, buoyed by recent consumer inflation figures that have raised speculation of a Federal Reserve interest rate cut in the coming month.
“The AI boom and the anticipated Fed rate cuts are providing support to the market, leading us to believe that despite the historically challenging seasonality of August and September, we are unlikely to see a significant pullback in the S&P,” commented Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors. “Instead, we anticipate a gradual upward trend.”
Separate data released on Friday morning indicated continued strength in U.S. consumer spending. Retail sales increased by 0.5% in July, meeting Dow Jones consensus forecasts. Excluding automobiles, retail sales rose by 0.3%, also aligning with expectations.
| Index | Last Change (%) |
| S&P 500 | -0.2% |
| Nasdaq Composite | -0.4% |
| Dow Jones Industrial Average | +0.2% |
| VanEck Semiconductor ETF (SMH) | -2.0% |