Closing Bell: Stocks Retreat from Peaks as Small Caps Hit New Highs

U.S. stocks retreated Friday, except for small caps, closing a week marked with optimism about inflation that sent some indexes to new highs. 

On Friday, the Dow Jones Industrial Average ($DJI) slipped 0.20%, and the S&P 500 Index (SPX) was down 0.17%, after reaching an all-time high Thursday. The small cap Russell 2000 Index (RUT) was up 0.51%, reaching an all-time high Friday. The tech-heavy Nasdaq-100 Index (NDX) was down 0.13%, and the PHLX Semiconductor Index (SOX) was down 0.31%.  

Investor sentiment swayed alongside economic data. Preliminary August consumer sentiment data from the University of Michigan showed that inflation remained top of mind for Americans, according to reports.  

U.S. retail sales fell the most in more than a year last month, according to data released Friday by the Census Bureau. The U.S. oil price benchmark rose more than 1% Friday to above $82 per barrel, bringing its weekly gain to roughly 7%. 

Here are four things to know from Friday's market: 

• Reddit (RDDT) shares surged nearly 13% after S&P Dow Jones Indices announced that the company will join the S&P 500 prior to the opening bell on August 18. See Andrew Arons Picks ORCL, MRVL & RDDT for 2H26 Amid Tech Rebound 
• JPMorgan upgraded Sandisk (SNDK) to "Overweight" and set a new price target of $2,250. Sandisk shares rose more than 7% Friday, and more than 35% on the week. See Market 'Optimism' Returns, SNDK & RDDT Rally While AMAT Falls on Earnings 
• Shares of Applied Materials (AMAT) fell 5% Friday despite earnings and guidance that beat expectations. See AMAT Earnings Beat, Investors Question Guidance Over China & Supply Constraints 
• The redesigned Tesla (TSLA) Roadster may have flying capabilities and could be equipped with SpaceX-developed cold-gas thrusters, according to The Information. Shares of Tesla were up 0.7% Friday and were up more than 4% for the week. See TSLA Hits Gas on Global EV Growth, Robotaxi & Optimus Next Gear Shift 

A number of CEOs of companies in the Russell 2000 spoke about their niche growth prospects in the U.S. economy, in sectors from finance to animal health. See What CEOs are Saying: 2Q Was Big, Expect More Growth | What CEOs are Saying: 2Q Was Big, Expect More Growth 

Angrej Singh contributed to this article 

ECONOMIC CALENDAR, Monday, August 17: 

• 08:30 AM: NY Empire State Manufacturing Index 
• 10:00 AM: NAHB Housing Market Index 

EARNINGS SNAPSHOT: Monday 

• Premarket: n/a 
• Postmarket: Fabrinet (FN) 

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