S&P 500 Secures Third Consecutive Weekly Gain Despite Friday Decline

Major U.S. indices closed slightly lower on Friday, as the S&P 500 lost 0.2% to close at 7,785.76 points, the Nasdaq Composite dropped 0.3% to 26,729.16 points, while the Dow Jones Industrial Average fell 0.2% to 53,732.41 points.

Despite the session's losses, the S&P 500 ended the week up about 0.4% in its third consecutive weekly gain, after recording a record close at 7,798.99 points on Thursday led by tech stocks.

Big tech stocks led Friday's losses as investors moved to take profits ahead of the weekend, at a time when U.S. Commerce Department data showed retail sales fell 0.6% in July, contrary to expectations, which increased caution regarding the strength of consumer spending.

On the other hand, housing and consumer stocks held ground after quarterly disclosures by major funds, including Berkshire Hathaway, revealed an increase in their positions in both sectors, while renewed talk of potential sanctions on Iran kept investors cautious ahead of the weekend, according to coverage by Trading Strategy Guides (Trading Strategy Guides).

What do these terms mean?

S&P 500: An index measuring the performance of the top 500 listed U.S. companies, considered by investors to be the broadest measure of the U.S. stock market direction.

Nasdaq Composite: An index dominated by technology companies, which moves strongly up and down with major tech stocks.

Dow Jones Industrial Average: The oldest U.S. index, comprising 30 major companies from various sectors.

Profit-taking: Investors selling stocks that have risen in price to turn paper gains into cash, like a merchant selling goods after a profitable season, putting temporary downward pressure on prices without signaling a trend change.