U.S. stocks fell after weak retail sales data tempered enthusiasm about the artificial-intelligence boom that has driven major indexes to record highs.
The Dow Jones Industrial Average fell 107.58 points or 0.20%, to 53732.41, closing within 1.1% of its all-time high. The S&P 500 declined 13.23 points, or 0.17%, to 7785.76 from Thursday's record. The tech-heavy Nasdaq Composite fell 73.86 points, or 0.28%, to 26729.16, snapping a three-session winning streak.
Retailers' sales fell by 0.6% last month to $763.6 billion, contrary to economists' expectations of a small increase.
The S&P 500 closed at a record high Thursday as investors bet that a combination of moderating inflation and an AI boom would lead to lasting growth in the U.S. economy. But the weak retail data was a reminder that U.S. growth is still largely a function of consumer behavior. An up-tick in oil futures, meanwhile, showed how inflation could persist even if the U.S. economy starts slowing.
Oil futures rose $1.15, or 1.4%, to $82.40 a barrel as the Strait of Hormuz remained largely shut.
Inflation concerns drove up Treasurys with yields on the 10-year note up 0.056 percentage point to 4.695%. The yield on the policy-sensitive two-year Treasury rose 0.031 percentage point to 4.170%.
The preliminary August reading of the University of Michigan's consumer sentiment index declined to 51 from 55.2 in July. The AAA driving association said gasoline prices are rising again after a recent decline and averaged $4.08 a gallon in the U.S. Friday.
The U.S. dollar ticked down against rivals after the weak retail-sales data.
Gold futures, which often move in the inverse direction to the dollar, rose $16.80, or 0.4%, to $4380.40 a troy ounce, registering a modest gain for the week.
Britain's BP and the United Arab Emirates' XRG will explore a gas field off the shore of Venezuela, in an indication that oil majors are tentatively returning to the country under its new regime.
For companies caught up in the AI boom, expectations remained sky high.
Shares of Applied Materials fell 5.1% to $507.18 even after the maker of semiconductor capital equipment posted fiscal third-quarter earnings growth.
China's DeepSeek, which caused a splash with its affordable AI models, said it was raising prices for its flagship V4 models as competition intensifies and computing costs rise.
Online forum Reddit will replace luxury-apartment developer AvalonBay Communities in the S&P 500 index before the opening of trading on Tuesday, according to S&P Dow Jones Indices, which oversees the index. Reddit soared 13% to $178.09.