04:38 PM EDT, 07/26/2024 (MT Newswires) -- US equity indexes closed mixed this week as investors booked profit in mega-cap technology and communication services names while adding exposure in utilities, healthcare, and industrials as the probability of an interest-rate cut in September approached near-certainty.

* The Dow Jones Industrial Average ended at 40,589.34 on Friday, up from 40,287.53 a week ago. The Nasdaq Composite closed at 17,357.88 versus 17,726.94 a week prior. The S&P 500 closed at 5,459.10, compared with 5,505.0 a week earlier.

* Tesla (TSLA) and Alphabet (GOOG, GOOGL) posted disappointing quarterly results, hitting the Nasdaq and S&P 500 and calling into question the ability of the Magnificent Seven group of stocks to continue carrying markets. Advanced Micro Devices ( AMD ) , Nvidia ( NVDA ) , Qualcomm ( QCOM ) , Meta Platforms ( META ) , and Apple ( AAPL ) ended the week lower.

* Technology and communication services were laggards this week, while utilities, healthcare, and industrials were the top gainers. Over a month, technology and communication services were the steepest decliners, signaling a rotation out of the two sectors that account for a chunk of the S&P 500 and Nasdaq gains year-to-date.

* Treasury yields fell across most maturities this week reflecting an economic slowdown that could prompt the Federal Reserve to begin easing policy. Late Friday, the 10- and two-year yields headed for a weekly drop, trading at 4.19% and 4.39%, respectively.

* The personal consumption expenditures price index eased to 2.5% annualized in June from 2.6% in May but was above the Street's 2.4% forecast. The Fed's preferred core measure was flat at 2.6% versus the 2.5% consensus. Inflation grew 0.1% sequentially in June from unchanged in May, while the core measure climbed 0.2% from 0.1%. Both metrics met expectations.

* According to the FedWatch Tool, the probability of a Fed rate cut in September stood at 95% late Friday as inflation continued to cool in June after the earlier reprieve in May.