U.S. stocks ended slightly lower at the close of the week after the S&P 500 pulled back from a record high as investors assessed weaker-than-expected retail sales and continuing tensions affecting global energy markets.

The index fell 0.17 percent to 7,785.76 points, while the Nasdaq and Dow Jones also recorded modest declines.

The decline came after several weeks of strong gains in U.S. equities.

Technology companies connected to artificial intelligence have been among the major drivers of the rally, while investors have also become more optimistic that the Federal Reserve may not need to raise interest rates at its September meeting.

Energy stocks moved in the opposite direction as oil prices increased.

Rising energy prices remain a concern for investors because expensive fuel can increase operating costs for businesses and place additional pressure on household spending.

Another company attracting attention was Reddit, whose shares jumped after the social-media company was selected for inclusion in the S&P 500 index.

Reddit is scheduled to join the index on August 18, meaning investment funds that track the benchmark will need to adjust their portfolios.

Analysts say markets remain supported by strong corporate earnings, particularly among major technology companies, but investors are becoming more cautious about inflation, energy prices and geopolitical developments.

The coming weeks are expected to provide further clues about the strength of the U.S. economy and the direction of interest rates.

Source: Reuters