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US stocks maintained record highs on Friday as fresh retail sales data eased concerns over consumer spending. The S&P 500 was marginally higher at 9:35 a.m. in New York, extending gains from earlier in the week. The Dow Jones Industrial Average rose 0.3%, while the Nasdaq 100 remained unchanged.
Data from the Commerce Department showed US retail sales increased 0.5% in July, following an upwardly revised 0.9% gain in June. Sales excluding cars rose 0.3%, reflecting broad-based growth supported by auto purchases and online promotions.
Chris Zaccarelli, chief investment officer at Northlight Asset Management, said stronger prior-month data improved the overall picture. He noted that continued consumer spending supports job retention, which can drive corporate profits and stock prices.
The S&P 500 retained its weekly advance as investors welcomed signs of resilient household demand. LPL Financial’s Jeffrey Roach said monitoring auto sales and discretionary spending, including restaurants, is key to assessing consumer health.
Roach added that recession risks remain low but suggested the Federal Reserve should adopt a neutral stance and consider rate cuts in upcoming meetings. Next week’s focus will shift to the Fed’s annual Jackson Hole symposium, where Chair Jerome Powell will deliver a policy update.
Bank of America strategist Michael Hartnett warned that Powell's dovish signals could trigger a “buy the rumor, sell the fact” reaction, leading to short-term declines. He said optimism over potential rate cuts had already encouraged inflows into equities, cryptocurrencies, and corporate bonds.
UnitedHealth Group, Lennar Corp., and DR Horton shares rose after Berkshire Hathaway disclosed new stakes in its quarterly 13F filing. UnitedHealth surged 9.49% as Warren Buffett’s firm purchased over five million shares valued at about $1.6 billion.
Intel gained 2.77% on reports that the Trump administration is discussing acquiring up to an 8.9% stake in the company. Circle Internet Group advanced 2.61% after pricing a 10 million share offering at $130 per share. Applied Materials fell 12.11% following a weaker-than-expected outlook despite beating quarterly earnings estimates.
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The 10-year Treasury yield climbed to 4.304%, while mortgage rates fell to their lowest level since October, reflecting expectations of lower interest rates. The University of Michigan consumer sentiment index, due later in the day, is expected to offer further insight into household confidence.
In global markets, European shares were mixed, with Germany’s DAX up 0.4% and Britain’s FTSE 100 nearly flat. Asian markets posted gains in Japan and Australia but saw declines in Hong Kong.
Oil prices slipped, with US benchmark crude at $63.88 per barrel and Brent crude at $66.73. The US dollar weakened against the yen, while the euro strengthened slightly against the dollar.
