By Christine Idzelis and Mark DeCambre
The Dow Jones Industrial Average closed at a record high Friday, its first such milestone since August, with U.S. stock benchmarks booking weekly gains on optimism surrounding third-quarter earnings, even as shares of technology companies fell under pressure.
Comments from Federal Reserve Chairman Jerome Powell, which could be read as hawkish, also appeared to keep stock gains in check.
How did stock indexes trade?
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -1.64% rose 73.94 points, or 0.2%, to close at a record 35,677.02.
The S&P 500 /zigman2/quotes/210599714/realtime SPX -1.68% index slipped 4.88 points, 0.1%, to end at 4,544.90.
The tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -1.51% dropped 125.50 points, or 0.8%, finishing at 15,090.20.
On Thursday , the Dow fell 6 points, or 0.02%, to 35,603, the S&P 500 increased 14 points, or 0.3%, to a record 4,549.78, and the Nasdaq Composite gained 94 points, or 0.62%, to 15216.
For the week, the Dow gained 1.1%, the S&P 500 was up 1.6%, and the Nasdaq Composite advanced 1.3%.
What drove the market?
The U.S. equity market on Friday faced pressure from selling in large-capitalization technology stocks, which weighed on the tech-heavy Nasdaq and the broad-market S&P 500.
Quarterly results late Thursday from Snapchat parent Snap Inc. /zigman2/quotes/205087158/composite SNAP -3.33% , which forecast a weaker-than-expected holiday season and expressed concerns over digital advertising , prompted a decline in internet and social-media related stocks, including Google-parent Alphabet /zigman2/quotes/202490156/composite GOOGL -2.10% and Facebook Inc. /zigman2/quotes/205064656/composite FB -3.33% .
“When you have 85% of companies beating estimates, it’s the misses that are standing out here,” said Jeffrey Kleintop, chief global investment at Charles Schwab, in a phone interview Friday. “They’re really getting punished today,” he said, pointing to the slide in shares of Intel Corp. /zigman2/quotes/203649727/composite INTC -1.43% and Snap.
Shares of Snap plummeted 26.6% Friday, while Intel dropped 11.7% after the chip maker’s revenue and data-center sales just missed expectations .
Earlier in Friday’s session, the S&P 500 and Dow traded in record territory but gains already were evaporating when Fed Chairman Jerome Powell said the U.S. labor market might reach “maximum employment” next year, possibly paving the way for interest rate hikes.
Those comments, made during a speech for the Bank for International Settlements, come as the Fed sees a serious risk of inflation expectations moving persistently higher, with other central bankers saying that it would use its tools to bring inflation in line with the annual 2% target hoped for by policy makers.
Still, bullishness on Wall Street has appeared to be durable after the S&P 500 on Thursday logged its first record closing high since Sept. 2. and the Dow rising to a fresh peak Friday.