Nasdaq manages 5th straight record high close; S&P 500 ends barely lower

The Nasdaq eked out a fifth straight record closing high on Friday following gains in Adobe and other technology-related shares, while the S&P 500 and Dow ended slightly lower. The S&P 500 ended its four-day run of record closing highs, but still climbed more than 1% for the week. The S&P 500 technology sector (.SPLRCT), opens new tab rose 0.5%, hitting another record high close. The communication services sector (.SPLRCL), opens new tab rose 0.6%, leading gains among sectors. Adobe (ADBE.O), opens new tab shares jumped 14.5% a day after the company raised its annual revenue forecast on more demand for its artificial intelligence-powered software. “You’ve had a big rally this week, led by big-cap tech. Under the surface, we have a lot of areas acting weak,” said Adam Sarhan, chief executive of 50 Park Investments in New York. The Russell small-cap index (.RUT), opens new tab fell 1.6%, adding to recent losses, while the S&P 500 industrials sector (.SPLRCI), opens new tab was down 1%. The Dow Jones Industrial Average (.DJI), opens new tab fell 57.94 points, or 0.15%, to 38,589.16. The S&P 500 (.SPX), opens new tab lost 2.14 points, or 0.04%, at 5,431.6 and the Nasdaq Composite (.IXIC), opens new tab added 21.32 points, or 0.12%, at 17,688.88. For the week, the Dow was down 0.5%, the S&P 500 rose 1.6% and the Nasdaq was up 3.2%. Investors are still trying to gauge how soon the Federal Reserve might be able to cut interest rates. Fed Bank of Chicago President Austan Goolsbee said he was relieved after data this week showed inflation in May had cooled, but he would still like to see “more months” of similar data before cutting interest rates. On Wednesday, Fed policymakers dialed back their projections for three cuts this year to just one. In a report on Friday, a preliminary reading of the University of Michigan’s Consumer Sentiment Index slipped to 65.6 in June, sharply lower than expectations. Nvidia (NVDA.O), opens new tab shares ended up 1.8% after briefly surpassing Apple (AAPL.O), opens new tab as the world’s second-most valuable company. A BofA Global Research report showed U.S. value stock funds had $2.6 billion of outflows, while investors poured $1.8 billion into U.S. growth stock funds in the week to Wednesday. Volume on U.S. exchanges was 10.12 billion shares, compared with the 12.10 billion average for the full session over the last 20 trading days. Declining issues outnumbered advancers on the NYSE by a 2.39-to-1 ratio; on Nasdaq, a 2.51-to-1 ratio favored decliners. The S&P 500 posted 11 new 52-week highs and 16 new lows; the Nasdaq Composite recorded 30 new highs and 192 new lows.