The Dow slumped by 0.3 percent to 44,342, the S&P 500 was flat at 6,296, and the Nasdaq ended little changed at 20,895.

"Investors are gearing up for next week," said Peter Cardillo of Spartan Capital Securities, noting that major brands like Coca-Cola, Tesla and Mattel are set to report their earnings.

Briefing.com added in a note that "a lack of major developments has kept the major averages drifting sideways since falling from session highs this morning."

For now, traders shrugged off a Financial Times report on Friday that US President Donald Trump is pushing for a minimum tariff of 15-20 percent on European Union products in any deal with the bloc.

This would mark a higher level than the 10 percent added tariff the EU – and most other US trading partners – are facing.

Markets also digested the preliminary results of a University of Michigan survey, which found that consumer sentiment crept up to the highest value in five months in July, although still substantially below its historical average.

Looking ahead to next week, traders will be eyeing Fed Chair Jerome Powell's remarks on Tuesday at a conference in Washington. (AFP)