US close: Mixed session closes out turbulent month
US stocks turned in a mixed performance on Friday as the cooling of trade tensions between the US and China somewhat helped markets.
At the close, the Dow Jones Industrial Average was up 0.16% at 26,403.28 and the S&P 500 was 0.06% ahead at 2,926.46. The Nasdaq Composite closed 0.13% weaker at 7,962.88.
The Dow closed 41.03 points weaker on Friday after stocks finished higher in the previous session following China's announcement that it desired to calmly wrap up its trade war with the US, giving investor sentiment a much-needed boost.
Although Dow futures initially had stocks opening lower on Friday, major indices registered an about-face in the early hours of the morning.
Donald Trump stated overnight that preliminary trade discussions with Beijing had taken place on Thursday with more set to follow in the coming weeks. China had already made it clear that it would not retaliate immediately in the trade dispute.
China's Foreign Ministry then said on Friday morning that US and Chinese negotiators were maintaining "effective communication" as both sides tried to reach a trade deal.
Meanwhile, the latest economic data showed that Americans continued to splash out over the summer by dipping into their savings.
According to the Department of Commerce, personal spending jumped at a 0.6% month-on-month pace in July, edging past forecasts for a rise of 0.5%.
Personal incomes, on the other hand, grew by just 0.1% in comparison to June (consensus: 0.3%), although June's reading was revised up a by a tenth of a percentage point to 0.5%.
Elsewhere, US core PCE inflation data continued to show tame price pressures, in line with analysts' estimates of 0.2% reading.
The University of Michigan's consumer sentiment index fell the most it had in six years on Friday, the lowest level of Donald Trump's presidency as Americans expressed concern about how his tariffs will affect the economy.
The final sentiment index fell to 89.8 in August from a previously reported 92.1.
Lastly, the Chicago purchasing manager's index rose above the 50 level signalling expansion in August, climbing to 50.4 from 44.4 in July.
In the corporate space, Campbell's Soup shot up after cost-cutting help the group beat profit estimates, while Big Lots shares also picked up steam on the back of its own quarterly figures.