Nasdaq manages 5th straight record close

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, rose 0.5%, hitting another record high close. The communication services sector, rose 0.6%, leading gains among sectors.

Adobe, 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, fell 1.6%, adding to recent losses, while the S&P 500 industrials sector, was down 1%. The Dow Jones Industrial Average, fell 57.94 points, or 0.15%, to 38,589.16. The S&P 500, lost 2.14 points, or 0.04%, at 5,431.6 and the Nasdaq Composite, 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 dialled 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, shares ended up 1.8% after briefly surpassing Apple, as the world’s second-most valuable company.

A BofA Global Research report showed US value stock funds had $2.6 billion of outflows, while investors poured $1.8 billion into US growth stock funds in the week to Wednesday.