05:09 PM EDT, 09/12/2025 (MT Newswires) -- The Nasdaq Composite climbed to a new peak for the fifth straight day in a mixed trading session on Friday, as Wall Street notched weekly gains ahead of the Federal Reserve's policy decision due next week.

The technology-heavy Nasdaq rose 0.4% to 22,141.1, a fresh record closing high. The Dow Jones Industrial Average fell 0.6% to 45,834.2, while the S&P 500 edged down 0.1% to 6,584.3.

Most sectors ended in the red, led by health care, while consumer discretionary and utilities saw the biggest gains.

For the week, the Nasdaq rose 2% and the S&P 500 added 1.6%, both posting back-to-back weekly gains. The Dow advanced nearly 1%, its first weekly increase in the past three weeks.

Markets widely expect the central bank's Federal Open Market Committee to lower its benchmark lending rate by 25 basis points on Wednesday, according to the CME FedWatch tool.

Official data on Thursday showed consumer inflation accelerating at the fastest pace in seven months in August, while the annual core rate remained above 3%.

"For the Fed, there's still 125 (basis-point) worth easing to get rates back down to the presumed neutral level, and the question is how long that will take given still-stubborn inflation," BMO Capital Markets said in a note published Friday. "Market pricing remains pretty gradual overall, with 125 (basis points) of easing priced in by July 2026. Let's just say the Fed has one eye on the job market, and one on the easing button."

Preliminary results from a University of Michigan survey showed Friday that consumer sentiment deteriorated in September to the lowest level since May. Year-ahead inflation expectations held steady at 4.8% this month, while the long-run outlook climbed to a three-month high of 3.9% from 3.5% in August.

"Tariffs have pushed the prices of some goods higher, but there is no evidence that tariffs are going to generate a sustained acceleration in inflation that is supported by higher wages and inflation expectations," Jefferies Chief US Economist Thomas Simons said in a report e-mailed to MT Newswires. "We expect that the Fed will cut rates 25 (basis points), continue to highlight downside risks to the labor market, and flag the end of (quantitative tightening), if they don't end it all together."

Retail price increases tied to US President Donald Trump's tariffs are appearing to take hold, with such gains at consumer growth and e-commerce names likely to continue over the coming months, Oppenheimer said.

The US Supreme Court agreed to hear the Trump administration's arguments challenging a lower court ruling on tariffs, according to an order released earlier this week. The US Court of Appeals for the Federal Circuit recently ruled that most of tariffs were illegal.

US Treasury yields were higher in Friday late-afternoon trade, with the 10-year rate increasing 3.3 basis points to 4.06% and the two-year rate adding 1.2 basis points to 3.56%.

In company news, Warner Bros. Discovery ( WBD ) shares surged nearly 17%, the top gainer on the S&P 500, following a roughly 29% jump in the previous session. Paramount Skydance ( PSKY ) is readying a majority cash bid for the media and entertainment giant, The Wall Street Journal reported Thursday, citing unnamed sources. Paramount shares were up 7.6%, the second best performer on the S&P 500.

Tesla (TSLA) was the third-best performer on the S&P 500, up 7.4%, while Microsoft ( MSFT ) and Apple ( AAPL ) led the Dow with a 1.8% gain each.

RH (RH) shares slumped 4.6%. Late Thursday, the home furnishing retailer lowered its full-year revenue growth outlook amid persistent tariff-related uncertainties after its fiscal second-quarter results came in below market expectations.

West Texas Intermediate crude oil was up 0.3% at $62.57 a barrel in late-afternoon trade.

Gold was up 0.3% at $3,684.10 per troy ounce, while silver increased 1.2% to $42.65 per ounce.