US shares eased on Friday as investors assessed softer consumer data following a record-setting week for the S&P 500.
The S&P 500 fell 0.2% to 7,785.76, while the Nasdaq Composite declined 0.3% to 26,729.16. The Dow Jones Industrial Average slipped 107.58 points, or 0.2%, to 53,732.41.
Despite Friday’s decline, the S&P 500 gained 0.4% for the week, its third consecutive weekly advance, while the Nasdaq added 0.1%. The Dow fell 0.6%.
The S&P 500 had crossed 7,800 for the first time during the week, reaching an intraday record of 7,816.70 on Thursday, supported by subdued inflation readings and resilient corporate earnings.
More than 90% of S&P 500 companies have now reported second-quarter results, with year-on-year earnings growth tracking around 50%, according to FactSet.
Economic data provided a more cautious signal. US retail sales unexpectedly declined in July, while consumer confidence fell in August following improvements in June and July. The softer readings added to the case for the Federal Reserve to keep interest rates unchanged.
Australian Market Outlook
Australian shares are set to open lower, with S&P/ASX 200 futures pointing to a 0.4% decline on Monday as investors prepare for one of the busiest weeks of the August reporting season.
Interest rates remain a key focus after the Reserve Bank left the cash rate unchanged last week but maintained a hawkish stance. Governor Michele Bullock said another increase remains possible if inflation pressures fail to ease.
That outlook will be tested by wages data on Wednesday and labour market figures on Thursday. RBA Deputy Governor Andrew Hauser is also scheduled to speak in Brisbane on Wednesday, with investors watching for further signals on the path for rates.
The Iran war also remains a risk for the local market, particularly if further disruption to energy flows pushes oil prices higher and adds to Australia’s inflation outlook.
Offshore on Monday, investors will also receive preliminary Japanese GDP data and Canadian inflation figures.
