The Standard & Poor's 500 index slipped 0.6% for its first weekly drop since mid-November.

The market benchmark ended Friday's session at 6,051.09 and while this snapped a three-week winning streak, the S&P 500 is still solidly in positive territory for 2024 with a year-to-date climb of 27%.

Data this week showed the US consumer price index increased 0.3% in November, ticking up from 0.2% in each of the previous four months. Annually, inflation accelerated to 2.7% from October's 2.6% pace. However, both measures were in line with forecasts in a Bloomberg-compiled survey.

November's producer prices, meanwhile, rose more than expected as wholesale costs of goods climbed amid a jump in the food component. The US producer price index increased 0.4% month over month on a seasonally adjusted basis in November, versus a consensus estimate for a 0.2% increase. Year over year, producer prices were up 3% in November, outpacing the 2.6% gain analysts were expecting.

Investors are keeping a close eye on the inflation measures as the Federal Reserve's Federal Open Market Committee is set to hold its final rate-setting meeting of the year next week.

The materials sector had the largest percentage drop across the S&P 500's sectors, shedding 2.9% on a weekly basis, followed by a 2.7% decline in utilities and a 2.4% loss in real estate.

Nucor (NUE) shares were the hardest-hit in the materials sector, falling 12%. UBS downgraded its investment rating on the stock to neutral from buy and said it sees "limited upside in the near term" for the stock. The firm also cut its price target on Nucor's shares to $156 each from $171.

In the utilities sector, shares of Pinnacle West Capital (PNW) slipped 4.4% as the company said the chairman and chief executive of the company and Arizona Public Service, Jeff Guldner, will retire on March 31. Ted Geisler will become chairman, president and CEO of Pinnacle West and Arizona Public Service, effective April 1, the company said.

Still, communication services rose 2.4% and consumer discretionary edged up 1.4%.

In communication services, shares of Warner Bros. Discovery (WBD) jumped 13% on the week as the company announced restructuring plans. Warner Bros. Discovery plans to implement a new corporate structure that will split operations into two divisions: Global Linear Networks, which is focused on profitability and cash flow, and Streaming & Studios, which is targeting growth through streaming and entertainment.

The FOMC meeting will be a main focus next week. Also, economic reports will include the second revision to Q3 gross domestic product. November US retail sales, housing starts and building permits will also be released, among other data.