The Standard & Poor's 500 fell 1.7% this week as consumer discretionary and communication services stocks weighed.

The index ended Friday's session at 6,013.13, moving it into the red for the month. The S&P 500 is now down 0.5% in February, but up 2.2% this year.

Data released this week by the National Association of Realtors showed January existing home sales in the US dropped more than projected amid elevated mortgage rates and higher prices. US housing starts fell more than expected last month amid declines in single- and multi-family projects, government data showed

Walmart (WMT) issued a full-year earnings outlook below market estimates amid uncertain consumer behavior and geopolitical conditions. The disappointing guidance came despite better-than-expected fiscal fourth-quarter results from the retailer.

The consumer discretionary sector had the largest percentage drop this week, down 4.3%, followed by a 3.7% decline in communication services. Industrials, materials, financials and technology also fell.

Cruise operators' stocks were among those hit hardest in the consumer discretionary sector as newly confirmed US Commerce Secretary Howard Lutnick suggested the Trump administration would force cruise operators to pay US taxes. Shares of Royal Caribbean Cruises (RCL) and Carnival (CCL) fell 11% each on the week while Norwegian Cruise Line Holdings (NCLH) lost 8.6%.

In communication services, shares of Facebook parent Meta Platforms (META) fell 7.2%. The company said in a regulatory filing late Thursday that it has increased the target bonus for each of the company's executive officers, other than its chief executive, to 200% of base salary from 75%, effective beginning with the 2025 annual performance period.

However, the utilities sector rose 1.4%, followed by gains of 1.1% each in energy and health care. Consumer staples and real estate also edged higher.

American Electric Power (AEP) was among the gainers in utilities, up 3.4%. Morgan Stanley raised its price target on the stock to $108 from $105 while keeping its investment rating at overweight.

Devon Energy (DVN) was among the energy sector's gainers, climbing 8.2% as the company reported Q4 core earnings per share above estimates while revenue also surpassed the Street view.

Next week's earnings calendar features Home Depot (HD), Intuit (INTU), NVIDIA (NVDA), Salesforce (CRM), Lowe's (LOW), TJX (TJX) and Berkshire Hathaway (BRK.A, BRK.B).

Economic data will include February consumer confidence, revised Q4 gross domestic product and January personal consumption expenditures, a closely watched inflation report.