Stocks barely budge on Wall Street; S&P 500 just shy of high

NEW YORK ( AP) — Stock indexes barely budged on Wall Street Friday, leaving the S&P 500 just shy of its record once again.

The S& P 500 edged down 0.58, or less than 0.1%, to 3,372.85 after drifting between small gains and losses throughout the day. They’re the latest meandering moves for the market, which has taken a pause after erasing almost all of the steep losses caused by the coronavirus pandemic.

In each of the prior two days, the S&P 500 made a brief run above its record closing high, which was set in February, only to fade in the afternoon. It remains within 0.4% of its record.

Wall Street was nearly evenly split between stocks that rose and fell, and the moves were almost uniformly modest. The Dow Jones Industrial Average inched up 34.30 points, or 0.1%, to 27,931.02, while the Nasdaq composite dipped 23.20, or 0.2%, to 11,019.30.

Consumer spending is the main locomotive for the U.S. economy, and a report on Friday showed some more improvements for U.S. retailers, though less than economists expected.

Sales at grocery stores, gas stations and other retailers rose 1.2% last month from June. It’s the third straight month of gains, following a historic plunge in the spring, but it marked a sharp slowdown from June’s 8.4% growth. It also fell short of the 2% growth that economists were expecting.

The report showed that the economy is now “more in a gentle phase of recovery,” said Mike Zigmont, director of trading and research at Harvest Volatility Management.

“It’s positive, but it’s not as ballistic as it was before,” he said.

Economists say consumer spending could be under more pressure following the expiration of U.S. government programs to aid the economy, including $600 in extra unemployment benefits each week. Investors say it’s crucial that Washington deliver another lifeline to the economy, and markets seem to be assuming a deal will happen.