US stocks edged lower on Friday, led by declines in utility shares as investors weighed prospects for an interest rate increase in the coming months.
Energy shares also weighed on the market, even though US crude oil prices settled higher.
The S&P utility index, which tends to fall as investor rate hike expectations rise, ended down 1.2 percent.
Photo: Bloomberg
The telecommunications index, also sensitive to changes in interest rates, fell 0.9 percent.
San Francisco Federal Reserve Bank President John Williams late on Thursday said if the US central bank waited too long to raise rates, it could be costly for the economy and that a possible rate hike next month should be in play.
The comments added to statements perceived as hawkish from New York Fed President William Dudley earlier in the week.
Investors are also bracing for next week’s meeting of global central bankers in Jackson Hole, Wyoming, where US Federal Reserve Chair Janet Yellen might provide insight on the rate outlook.
The market’s recent run-up to record highs has been partly supported by expectations that the Fed would continue to keep rates low, as well as by some upbeat earnings and economic news.
“Equities are ending this week largely unchanged. The dog days of summer are among us, earnings season is over and investors are in pause mode with the popular indices near all-time highs,” said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis.
“I think we’re going sideways for a month or so as we await visibility. In the absence of earnings data, I think the Fed will take center stage,” Sandven said.
The Dow Jones Industrial Average ended down 45.13 points, or 0.24 percent, to 18,552.57; the S&P 500 lost 3.15 points, or 0.14 percent, to close at 2,183.87; and the NASDAQ Composite dropped 1.77 points, or 0.03 percent, to 5,238.38.
For the week, the Dow fell 0.1 percent and the S&P 500 slid 0.01 percent, while the NASDAQ edged up 0.1 percent.
The benchmark S&P 500 index is still up 6.8 percent for the year so far.
The energy index was down 0.8 percent.
Among the day’s advancers, Applied Materials rose 7.1 percent to US$29.64 after the chip equipment maker gave a strong current-quarter profit forecast.
Deere also climbed 13.5 percent to US$87.32 after the farming machinery manufacturer raised its full-year profit outlook.
Declining issues outnumbered advancing ones on the NYSE by a 1.45-to-1 ratio; on the NASDAQ, a 1.11-to-1 ratio favored decliners.
The S&P 500 posted 20 new 52-week highs and no new lows; the NASDAQ recorded 102 new highs and 22 new lows.
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