S&P 500 drifts from record levels as retail sales slow

Wall Street was muted on Friday, with the S&P 500 slipping from near record highs, as a slowdown in domestic retail sales growth added to worries about a wobbly post-pandemic economic recovery in the absence of a new U.S. fiscal stimulus bill.

Technology, which has been the best performing sector through the pandemic, led declines among the 11 major S&P indexes, while financials and industrials outperformed.

Aggressive stimulus measures have helped Wall Street’s three main indexes bounce from a coronavirus-driven crash in March, and the S&P 500 briefly traded above its Feb. 19 record close for a second straight day on Thursday.

Although the benchmark index was set to rise for a third straight week, it has struggled to top its all-time high of 3,393.52, as talks between top Democrats and the White House over more stimulus measures to support the economy reached a deadlock.

Uncertainty over the timing of a stimulus agreement has undercut sentiment in recent sessions, with the upcoming U.S. presidential elections expected to add another layer of caution.

At 11:00 a.m. ET, the Dow Jones Industrial Average was down 26.73 points, or 0.10%, at 27,869.99, the S&P 500 was down 3.44 points, or 0.10%, at 3,369.99. The Nasdaq Composite was down 50.24 points, or 0.45%, at 10,992.26.

The S&P index recorded 12 new 52-week highs and no new low, while the Nasdaq recorded 32 new highs and six new lows.

S&P 500 drifts from record levels as retail sales slow, Reuters, Aug 14