US close: Markets close slightly higher after a quiet session

US stocks finished Friday's session with minimal gains, as a quiet day for corporate earnings and economic data led to a risk-off attitude among investors.

By the closing bell, the Dow was up 0.22%, the Nasdaq edged 0.09% higher, while the S&P 500 gained 0.14% – with the latter breaking a three-day losing streak.

The S&P 500 was down around 1.3% on the week, with big losses from heavyweight tech stocks like Apple and Nvidia providing a drag on the rest of the market.

"As we wrap up the first week of September, those trading around historical trends will be quick to note that the declines we are seeing could be just the beginning given the weakness that usually dominates this month," said Joshua Mahony, market analyst at Scope Markets.

Monetary policy under the microscope

The reaction to better-than-forecast jobless claims figures on Thursday was mixed, since an unexpected decline in filings for unemployment benefits raises concerns that Federal Reserve's work to cool the economy – to bring down inflation – may not yet be over.

As such, comments from several Fed members were very much still in focus, after they suggested that the central bank is unlikely to raise interest rates at its next meeting later this month.

In an interview with Bloomberg News on Thursday, New York Fed president John Williams suggested he was happy with rates at current levels: “We’ve done a lot [...] Right now, we’ve gotten monetary policy in a very good place. It is having the desired effects. Going forward, we will have to keep watching the data."

Meanwhile, Dallas Fed president Lorie Logan acknowledged that while "there is work left to do", a pause in the rate-hiking cycle "could be appropriate".

Apple decline takes a breather

Apple inched 0.4% higher as it attempted to recover from a 6% slump over the past three trading sessions on reports that China is banning government officials from using iPhones at work as Beijing looks to reduce its dependence on US tech.

"This acts as a significant headwind to Apple as China is its largest international market and accounts for about 20% of its revenues," said Victoria Scholar, head of investment at Interactive Investor.

"The developments overshadow Apple’s hotly anticipated iPhone 15 launches next week and comes at a suspicious time given that Chinese smartphone maker Huawei last week released a new rival smartphone. It also shines the line on the risk to the US tech sector from growing US-Sino trade tensions," Scholar said.

Apple supplier Qualcomm, which sank 7% on Thursday, fell another 0.2% on Friday.

In other tech movements, AI computing giant Nvidia finished 1.5% lower, pulling its weekly loss to around 6%, as it continues to pull back from recent record highs. Even with this week's losses, the stock is up 218% so far this year.

Goldman Sachs was 1% higher on the news that the investment banking giant would cut underperformers as soon as October – a regular practice that it had paused in during the pandemic – according to the Financial times.

Chevron edged 0.3% higher despite industrial action beginning at two of its natural-gas plants in Australia. The facilities account for 7% of worldwide liquefied natural-gas volumes.

Kroger rose 3% despite the supermarket and pharmacy retailer being hit by a $1.4bn charge to settle an opioid-related lawsuits, after being accused of downplaying the risks of opioid painkillers. The company is in the midst of a $25bn takeover of sector peer Albertsons, and said on Friday that it is planning to sell 400 stores to settle competition concerns in order to get the deal done.