Small-cap stocks outperformed while major indices saw modest declines amid rising yields and a weaker USD.
US equities ended the week on a mixed note Friday, with the Russell 2000 small-cap index rising 0.51% to a record 3,068.42. The S&P 500 and Nasdaq slipped 0.17% and 0.28%, respectively, while the Dow fell 0.20% to 53,737.38. The moves came as Treasury yields climbed and the dollar weakened broadly against major currencies.
Earlier in the week, the S&P 500 had reached a new all-time high before paring gains. June US business inventories held flat at 0.0%, missing the 0.1% estimate, while July retail sales fell 0.6% versus expectations of a 0.1% gain. Consumer sentiment also disappointed, with the August preliminary University of Michigan reading at 51.0, below the 54.5 forecast.
The dollar’s decline accelerated amid speculation the Bank of Japan may raise rates further, lifting the yen. Canadian manufacturing sales rose 0.1% in June, beating the -0.1% estimate, while the weekly US Baker Hughes rig count increased by five.