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• The benchmark S&P 500 dipped 0.3%, while the Nasdaq Composite fell 0.5%.
• The Dow Jones Industrial Average shed 140.82 points, or 0.3%.
• Investors are bracing for a busy week ahead.

The S&P 500 ended lower on Friday after setting fresh intraday records earlier in the session, as investors took profits following a strong week.

Despite the pullback, major US indexes notched their second consecutive weekly gains, signaling renewed optimism in the markets.

The benchmark S&P 500 dipped 0.3% to close at 6,101.24, while the Nasdaq Composite fell 0.5% to 19,954.30.

The Dow Jones Industrial Average shed 140.82 points, or 0.3%, to finish at 44,424.25. Friday’s losses halted a four-day winning streak across all three indexes.

Megacap technology stocks, which were instrumental in the market’s recent highs, weighed on equities. Nvidia (NVDA) dropped over 3%, and Tesla (TSLA) slipped more than 1%, contributing to the session’s decline.

Weekly gains despite profit-taking
 

For the week, the S&P 500 and Nasdaq climbed 1.7% each, while the Dow rose 2.2%.

The indexes hit new intraday and closing records earlier in the week, powered by investor enthusiasm over pro-business policies under President Donald Trump and relief over his restrained tariff stance during his early days in office.

Investors are bracing for a busy week ahead
 

On Thursday, Trump told global leaders in Davos, Switzerland, that he would push for immediate interest rate cuts and seek lower oil prices from OPEC nations, adding another layer of intrigue to market movements.

Beyond politics, earnings reports and corporate developments remained in focus.

Novo Nordisk (NVO) surged over 8% after early-stage trials for its weight-loss drug showed promise.

Meanwhile, Texas Instruments (TXN) fell more than 7% following weak earnings guidance.

Investors are bracing for a busy week ahead, with major technology earnings and the Federal Reserve meeting on the radar.

According to CME Group’s FedWatch Tool, there is a 99% probability that the Fed will leave interest rates unchanged.

The market’s trajectory will likely hinge on upcoming earnings from key tech players and the Fed’s outlook on monetary policy, as traders assess the sustainability of the current bull market.

The S&P 500 reached a record closing high on Thursday, marking its first such achievement since early December.

The rally came after President Donald Trump, during his appearance at the World Economic Forum in Davos, Switzerland, advocated for lowering taxes, oil prices, and interest rates in his first major international speech of the term.

Technology stocks, which had boosted the market midweek, reversed course on Friday and became the weakest-performing sector.

Shares of Texas Instruments tumbled 7.2% after the chipmaker projected a first-quarter profit below analysts’ estimates, citing an inventory buildup in its key automotive and industrial markets.

Nvidia was the biggest drag on the S&P 500, sliding 3.1%, while other tech heavyweights like Microsoft (MSFT) and Tesla lost 0.6% and 1.4%, respectively.

In other sectors, American Express (AXP) reported a 12% jump in fourth-quarter profit, but its stock fell 1.4%, weighing on the Dow Jones Industrial Average.

Boeing (BA) also dragged on the Dow, losing 1.4% after warning of a $4 billion loss in its upcoming quarterly results, due Tuesday.

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