US stocks coast toward the end of their best week in the last 5

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NEW YORK (AP) — Wall Street is coasting toward the finish of its best week in the last five as U.S. stocks hang near their record levels. The S&P 500 slipped 0.1% in early trading Friday after setting an all-time high for the third straight day. The Dow Jones Industrial Average was down 0.2%, and the Nasdaq composite was up 0.1%. Stocks have rallied with expectations that the Federal Reserve will cut its main interest rate for the first time this year at its meeting next week. RH dropped after the furniture retailer said tariffs and a weak housing market are forcing it to cut its forecasts.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Trading on Wall Street was quietly mixed early Friday as markets near the end of another record-setting week ahead of the Federal Reserve's interest rate decision on Wednesday.

Futures for the S&P 500 were flat, while futures for the Dow Jones Industrial Average shed 0.2% and Nasdaq futures ticked up 0.1%.

Following a mixed set of U.S. data on Thursday, markets are banking that the Federal Reserve will cut interest rates next week, which should give the economy a boost.

The Fed has been hesitant to cut interest rates throughout 2025 because of the threat that President Donald Trump’s tariffs could make inflation worse. Lower interest rates could exacerbate inflation. The Fed’s inaction has infuriated Trump, who has threatened to fire Fed Chair Jerome Powell and has escalated his attempt to fire Federal Reserve Governor Lisa Cook, accusing her of mortgage fraud.

On Thursday, the Trump administration asked an appeals court to remove Cook from the Federal Reserve’s board of governors by Monday, before the central bank’s votes on interest rates. Trump initially sought to fire Cook Aug. 25, but a federal judge ruled late Tuesday that the removal was illegal and reinstated her to the Fed’s board.

In equities trading, RH shares slid 7% after the company formerly known as Restoration Hardware missed sales and profit targets and lowered its full-year guidance due to the impacts of tariffs.

Microsoft rose modestly after European Union regulators accepted the tech giant's proposed changes to its Teams platform, resolving a long-running antitrust investigation.

The European Commission said in a statement Friday that Microsoft’s final commitments to unbundle Teams from its Office software suite, including further tweaks following a market test in May and June, are enough to satisfy competition concerns.

Microsoft shares rose 1% before the opening bell.

Elsewhere, in Europe at midday, Germany's DAX edged down 0.3%, the CAC 40 in Paris fell 0.5% and Britain's FTSE 100 added nearly 0.3%.

Japan's Nikkei 225 closed 0.9% higher to 44,768.12, with Japanese stocks hitting fresh records. Shares in semiconductor company Tokyo Electron, Sony Group and Fast Retailing were among the movers.

In Chinese markets, Hong Kong’s Hang Seng index rose 1.2% to 26,388.16. Tech shares led gainers on AI optimism, while property stocks climbed as Beijing moves to help cover unpaid bills of local governments. The Shanghai Composite index slipped 0.1% to 3,870.60.

In Seoul, the Kospi climbed 1.5% to 3,395.54 while Australia's S&P/ASX 200 added 0.7% to 8,864.90. India's BSE Sensex rose 0.5% while Taiwan's Taiex was up 1%.

In energy trading early Friday, benchmark U.S. crude gained 1.5% to $63.29 per barrel.