Wall Street’s record run stalled Friday, with the S&P 500 slipping from Thursday’s all-time closing high after retail sales unexpectedly contracted and consumer sentiment fell more than expected.

A fresh leg higher in crude, driven by Washington’s escalating pressure campaign on Iran, split the tape: energy stocks rallied while tech eased.

Retail sales fell 0.6% in July against expectations for a 0.1% gain, while the core measure dropped 0.3% versus a forecast 0.2% increase. The University of Michigan’s preliminary August sentiment index sank to 51 from 55.2, missing the 55 consensus, even as year-ahead inflation expectations ticked up to 4.3%.

Treasuries sold off anyway, and the curve steepened. The 10-year yield climbed 5 basis points to 4.69%, the 30-year rose 6 basis points to 5.27%, while the 2-year barely budged at 4.16%.

Rate-hike expectations moved the other way. On Polymarket, the probability that the Fed leaves rates unchanged after its September meeting jumped 5 points to 76%, while odds of a 25-basis-point hike fell 5 points to 24%.

Across U.S. equity markets by midday Friday, losses were narrow and concentrated, with small caps and commodity-linked names holding firm against a heavy technology tape.

The S&P 500 eased 0.2% to 7,784. The Nasdaq 100 was the clear laggard, down 0.6% to 29,912. SanDisk Corp. (NASDAQ:SNDK) rallied 7%, extending a powerful weekly rally following its Investor Day.

The Russell 2000 bucked the trend, adding 0.3% to 3,062 and extending record highs.

Gold – as tracked by the SPDR Gold Shares (NYSE:GLD) – advanced 0.9% to $4,389.77 an ounce, extending a second straight weekly gain.

Friday’s Performance In Major US Indices

Index	Last	% Change
S&P 500	7,784.21	-0.2%
Dow Jones	53,700.56	-0.3%
Nasdaq 100	29,911.89	-0.6%
Russell 2000	3,061.65	+0.3%

According to the Benzinga Pro platform:

• The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.2%.
• The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) fell 0.3%.
• The Invesco QQQ Trust (NASDAQ:QQQ) declined 0.6%.
• The iShares Russell 2000 ETF (NYSE:IWM) gained 0.3%.

Sector Movers

The Energy Select Sector SPDR Fund (NYSE:XLE) was the standout, rising 1.5% as crude firmed, with ConocoPhillips (NYSE:COP) up 1.9% alongside Chevron Corp. (NYSE:CVX).

At the other end, the Technology Select Sector SPDR Fund (NYSE:XLK) fell 0.6% and the Health Care Select Sector SPDR Fund (NYSE:XLV) dropped 0.5%, dragged by a 2.1% slide in Eli Lilly and Co. (NYSE:LLY).

Defensives and rate-sensitives held up better, with the Utilities Select Sector SPDR Fund (NYSE:XLU) up 0.5% and the Communication Services Select Sector SPDR Fund (NYSE:XLC) up 0.4%.

The Financial Select Sector SPDR Fund (NYSE:XLF) and the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) each edged 0.1% lower.

At the industry level, the split was stark.

The VanEck Oil Services ETF (NYSE:OIH) jumped 2.8%, the SPDR S&P Metals & Mining ETF (NYSE:XME) rose 2.2% and the VanEck Gold Miners ETF (NYSE:GDX) added 1.8%, while the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) gained 1.0%.

On the losing side, the iShares Expanded Tech-Software Sector ETF (BATS:IGV) shed 1.3% and the VanEck Semiconductor ETF (NASDAQ:SMH) fell 0.8%.

Friday’s Movers

Applied Optoelectronics Inc. (NASDAQ:AAOI) led the Russell 1000 with a 15.4% surge, extending gains tied to its record second-quarter revenue of $191.9 million, up 86%, with datacenter sales up 140% to $107.7 million and third-quarter guidance implying 33% to 51% sequential growth as the company scales toward 650,000 units per month by year-end.

Reddit Inc. (NYSE:RDDT) rallied 13.1% after S&P Dow Jones Indices said the company will join the S&P 500 before the open on Aug. 18, replacing AvalonBay Communities Inc. (NYSE:AVB), which is exiting ahead of its all-stock merger with Equity Residential. Reddit becomes only the second pure-play social media name in the benchmark after Meta.

Nu Holdings Ltd. (NYSE:NU) climbed 9.8% after reporting quarterly net income above $1 billion for the first time in its history Thursday after the close, on gross revenue of nearly $5.9 billion, up 39%, a 37% larger credit portfolio and 139 million customers. Early delinquencies improved to 4.85% from 5.02% in the prior quarter.

MP Materials Corp. (NYSE:MP) advanced 8.7%, riding the same rare-earth and hard-asset bid that lifted metal stocks, after its Aug. 6 second-quarter report showed revenue up 89% to $108.5 million against a $96 million consensus, NdPr oxide and metal sales up 277%, and a nine-figure gadolinium supply agreement with a U.S. aerospace and defense customer.

Almonty Industries Inc. (NASDAQ:ALM) rose 8.1%. There was no fresh company-specific headline in Friday’s tape; the move tracks a continued melt-up in European tungsten prices toward $3,075 per metric tonne unit from $453 a year ago and the ongoing ramp at its Sangdong mine in South Korea.

On the downside, Bullish (NYSE:BLSH) was the worst performer, sliding 8.2% as investors continued to digest Thursday morning’s second-quarter print, which paired 62% revenue growth to $92.6 million with a $280 million net loss.

Duolingo Inc. (NASDAQ:DUOL) fell 7.2% on no confirmed catalyst Friday. The slide extends a post-earnings de-rating that has drawn a string of analyst cuts this month, including a Bank of America downgrade to Underperform with a $93 price target and a JPMorgan move to Hold with a $95 target, as the company prioritizes daily active user growth over near-term bookings.

Doximity Inc. (NYSE:DOCS) dropped 6.2% with no confirmed news catalyst in the tape; the stock has now fallen roughly 40% year-to-date since May’s guidance-driven collapse and sits near multi-year lows.

Broadcom Inc. (NASDAQ:AVGO) tumbled 5.3% to $395 on no fresh company-specific news, with the move consistent with profit-taking and valuation de-risking ahead of its fiscal third-quarter report in early September.

Applied Materials Inc. (NASDAQ:AMAT) slid 5.1% despite beating on the bottom line Thursday after the close, posting fiscal third-quarter earnings of $3.50 per share versus $3.45 expected.

Revenue of $9.12 billion narrowly missed the $9.18 billion consensus, and the top-line shortfall was enough to sink a stock that had more than doubled year-to-date before a violent July drawdown.

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