A record-setting week for Wall Street is closing on a quieter note Friday, and U.S. stocks are pulling back from their highs hit during a worldwide rally the day before. The S&P 500 was down 0.5% in late trading,

"A soft landing is the most likely economic scenario which makes the current environment most comparable to the mid-1990s," BMO's Brian Belski said.

The S&P 500 climbed over 1.7% to a new record, with the Dow Jones and Nasdaq also gaining after the Federal Reserve's rate cut. European markets rose as the Bank of England kept interest rates steady.

Almost every major group in the S&P 500 gained, with the benchmark up 1.7% and poised for its 39th record this year. The Nasdaq 100 climbed 2.9% and the Russell 2000 of small caps extended its advance into a seventh straight session.