US crude oil prices fell 3.7 per cent, dragging down energy stocks. Exxon Mobil shed 4.6 per cent.

TurboTax maker Intuit jumped 10.1 per cent for the biggest gain in the S&P 500 after raising its profit forecast for its fiscal year. Software maker Adobe rose 2.6 per cent.

Several companies that rely on direct consumer spending for goods and services also rose. Tesla added 3.7 per cent and Nike rose 2.1 per cent.

Moderna climbed 4.9 per cent and Pfizer fell 1.2 per cent after the Food and Drug Administration opened up coronavirus booster shots from the two companies to all adults.

US stocks have been mostly pushing higher since early October as companies reported much stronger profits for the summer than analysts expected. More than 95 per cent of companies in the S&P 500 have reported their latest quarterly results in recent weeks, posting overall earnings growth of about 40 per cent. That outpaces analysts’ forecasts for 23 per cent growth made back in June.

Still, companies are facing higher raw materials costs and supply chain problems that could crimp future profits. Consumers have so far absorbed higher prices, but analysts fear they could eventually rein in their spending if higher prices persist too long.

The situation is putting pressure on the Federal Reserve to move faster to rein in its ultra-low-rate policies in order to combat rising prices. On Friday, analysts at Bank of America projected that the Fed will likely start raising its benchmark interest rate in the second quarter of 2022, two quarters earlier than they had previously forecast.

Businesses are facing higher raw materials costs and supply chain problems that have been cutting into operations. That has raised concerns that a wide range of industries could see growth stunted into 2022.

The latest examples include Williams-Sonoma. The seller of cookware and home furnishings warned investors that supply chain problems could hurt its inventory through the middle of next year. The stock fell 1.5 per cent.

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Applied Materials fell 5.5 per cent after reporting weak financial results and a disappointing profit forecast partly because of supply chain problems.

“Those (supply chain) problems will likely clear over time, but they may not clear in time for the holiday season,” Northey said. “That may cause demand to be unmet or shift to early next year.”

Wall Street is also worried about consumers eventually pulling back on spending because of higher prices. Prices for US consumers jumped 6.2 per cent in October compared with a year earlier, leaving families facing their highest inflation rate since 1990, the Labor Department said.

The higher prices have yet to derail consumer spending, though, and retail sales jumped 1.7 per cent in October, according to the Commerce Department. That was the biggest month-to-month gain since March.