Major U.S. stock indexes slipped Friday as drug companies dragged the market lower. Small-company stocks bucked the downward trend and continued to climb, and bond yields rose to their highest level in a year.
Drugmakers like Merck and biotech company Amgen took some of the biggest losses Friday. Weak results from Gap and Abercrombie & Fitch hurt retailers.
Small companies including regional banks continued to make large gains. Those stocks have risen sharply since the presidential election last week and are now at record highs.
“Some of the proposals that [President-elect Donald] Trump has promoted, specifically deregulation and also some of his trade proposals, are better for small companies than potentially they are for large ones,” said Katie Nixon, chief investment officer for Northern Trust.
The Dow Jones industrial average slid 35.89 points to 18,867.93. The Standard & Poor’s 500 index lost 0.24 percent, closing at 2,181.90. The Nasdaq composite touched a record high early on but turned lower and gave up 0.23 percent, to end at 5,321.51.
Indexes of smaller companies, like the Russell 2000 and the S&P 600, are on 11-day winning streaks and have hit all-time highs. — AP