LIVE MARKETS-Wall Street ends with Nasdaq record, S&P 500 dip

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WALL STREET ENDS WITH NASDAQ RECORD, S&P 500 DIP

While the Nasdaq composite .IXIC and the Nasdaq 100 .NDX registered a record closing highs with small advances on Thursday, the S&P 500 .SPX ended slightly lower and the Dow .DJI was down 0.5% after a choppy session. Investors digested some weaker than expected earnings updates and monitored the latest tariff moves and worried about their impact on inflation.

For the Nasdaq composite, it was its 17th record close so far this year. Also in the records department, the Philadelphia Gold and Silver index .XAU, an index of 30 precious metal mining companies, posted a record closing high, finally surpassing its previous record closing high established on April 8, 2011.

U.S. President Donald Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, raising the average U.S. import duty to its highest in a century and leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal. The U.S. Customs and Border Protection agency began collecting tariffs ranging from 10% to 50% at 12:01 a.m. EDT (0401 GMT) after weeks of suspense over final rates and frantic negotiations. The leaders of Brazil and India vowed not to be cowed by Trump's hardline bargaining position, even while their negotiators sought a reprieve from the highest tariff levels.

Chip stocks were some of the Nasdaq's biggest boosts on Thursday after Trump's announcement that tariffs of about 100% on imports of semiconductors would not apply to companies that are manufacturing in the U.S. or have committed to do so. This helped send the Philadelphia semiconductor index .SOX up 1.5%.

Software was a weak spot in technology, however, with shares of Fortinet FTNT.O tumbling 22% after it forecast third-quarter revenue below Wall Street estimates late on Wednesday, as businesses cut back on spending amid widespread macroeconomic uncertainty stemming from global trade tensions. Crowdstrike CRWD.O fell 5.9% in sympathy. Even software heavyweight Microsoft MSFT.O came under pressure with a 0.8% drop, making it the Nasdaq's biggest drag on the day.

Still, the S&P 500 tech sector .SPLRCT did manage a record close.

Rosenblatt Securities equity sales trader Michael James said that Fortinet's weakness cast a shadow over the broader market as well as other software companies.

"There's an elevated sense of nervousness amongst people, not just for a fear of missing out for another leg higher, but just as much the fear of overstaying one's welcome and not wanting to be too late to trim positions should things potentially roll over further," James said.

While the broader indexes had looked strong at the open, Sahak Manuelian, managing director for global equities trading at Wedbush Securities said that "under the surface it wasn't as good." Manuelian added: "There's definitely been pockets of weakness in earnings today."

Along with weakness in software, he pointed to investor disappointment over reports from some consumer companies. Ralph Lauren RL.N ended down 6.5% after it cautioned that tariff-related costs would pressure its margins this year and said it was bracing to see how inflation was weighing on price-sensitive consumers.

Crocs CROX.O shares plunged 29% after it warned that tariffs would cut into Q3 margins and were leading to elevated inventory. While the casual shoe company said it will raise some prices to offset tariff impacts, it could not raise all prices due to consumer caution.

Meanwhile, in its latest Survey of Consumer Expectations, the New York Federal Reserve found that Americans' longer-term inflation outlook deteriorated in July even as households boosted their views on the current and future state of their respective financial situations. Respondents said the expected level of inflation five years from now was 2.9% in July, rising from 2.6% in the prior month and the highest reading since March. And inflation expectations for a year from now rose to 3.1% from 3% in June, while three-year-ahead expected inflation held steady at 3%.

Here is your closing snapshot:

(Sinéad Carew, Terence Gabriel)

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