US stocks were little changed on Friday, pausing near record highs after a strong week of gains.
The S&P 500 edged up 0.1%, while the Nasdaq Composite hovered near the flatline. The Dow Jones Industrial Average rose 44 points, or 0.1%.
The muted action comes ahead of a critical stretch for markets, with more than 150 S&P 500 companies scheduled to report earnings next week.
That includes key members of the so-called “Magnificent Seven,” such as Apple and Meta Platforms.
Thursday’s session saw both the S&P 500 and Nasdaq notch new all-time intraday and closing highs.
The S&P 500 has now recorded 13 record closes this year—four of them this week—finishing above the 6,300 mark for the first time on Monday.
The Nasdaq logged three record closes this week, surpassing 21,000 on Wednesday.
Despite a dip in the Dow on Thursday, all three major indexes are on track to end the week higher.
The Dow is up nearly 1% for the week, matching gains in the Nasdaq. The S&P 500 has risen approximately 1.1% week-to-date.
Market sentiment has been buoyed by a strong start to earnings season.
According to FactSet, more than 82% of the 169 S&P 500 companies that have reported so far have topped analysts’ estimates, including a standout performance from Alphabet.
Investors are now looking ahead to two major events: potential trade developments before the Trump administration’s August 1 tariff deadline, and the Federal Reserve’s policy meeting next week.
The central bank is widely expected to hold rates steady at 4.25% to 4.5%.
UBS flags near-term risk to bull market
UBS has warned that the ongoing trade standoff led by U.S. President Donald Trump could temporarily pause the current bull run in equities.
David Lefkowitz, head of US equities at the firm, said the uncertainty around tariffs and delayed trade deals may weigh on business sentiment and further postpone interest rate cuts by the Federal Reserve.
“There could be a pause in the bull market in the short-term,” Lefkowitz noted in a client briefing.
“President Trump continues to threaten higher tariffs and extend the timeline for reaching trade agreements. This is a damper on business investment decision-making.”
Despite these concerns, the S&P 500 has surged more than 30% from its April 7 low, notching four record highs this week and breaching the 6,300 mark for the first time.
Investors have so far looked past trade risks, focusing instead on strong economic growth and corporate earnings.
UBS maintains a neutral stance on U.S. equities in the near term, citing potential downside risks from trade.
“It appears that investors are already pricing in a substantial de-escalation in trade frictions,” the firm said.
“We believe the bull market is intact, and stocks will likely rise further over the next year.”
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