The S&P 500 capped the slowest trading week in 2016 with a record close Friday.
An average of roughly 5.9 billion U.S. shares changed hands per day this past week, about 1.7 billion fewer shares than has been typical so far this year and the quietest week since the end of December.
Traders have attributed the light trading volumes to a typical summer slowdown, especially after a busy several weeks.
Stocks tumbled at the end of June following the U.K. Brexit vote, then rebounded to new records. In recent weeks, major indexes have been bolstered by encouraging U.S. economic data and corporate earnings that have largely exceeded expectations.
In the past week, the S&P 500 rose 0.6% and the Dow Jones Industrial Average gained 0.3%. It was the first week the indexes have moved less than 1% since early June.
Earnings drove trading all week. With 126 companies in the S&P 500 reporting, earnings in the index are on track to contract 4.4% in the second quarter from the prior year, according to FactSet. As of June 30, analysts had expected corporate profits to fall 5.3% in the second quarter, FactSet data show.
Better-than-expected results from software giant Microsoft and chip maker Qualcomm helped lift the S&P 500's technology sector to a 2% weekly gain.
Financial shares in the S&P 500 gained 0.7% for the week as big banks posted second-quarter results that topped analysts' expectations.
On Friday, Honeywell International posted second-quarter revenue and profit gains but cut its revenue forecast for the year. Its shares fell $ 3.05, or 2.6%, to $ 115.61.
General Electric shares slipped 53 cents, or 1.6%, to 32.06 after the company reported better-than-expected earnings but also described the current business environment as "a volatile and slow-growth economy."
On Friday, the S&P 500 rose 9.86 points, or 0.5%, to 2175.03, a new record. The Dow industrials added 53.62, or 0.3%, to 18570.85, while the Nasdaq Composite gained 26.26, or 0.5%, to 5100.16.
European stocks lost ground after some of the first economic data since the U.K. referendum came in unexpectedly strong for the eurozone, but worse than anticipated for Britain. The Stoxx Europe 600 index fell 0.1% Friday but closed the week up 0.7%.
Data showed the U.K. economy likely contracted in July as businesses cut output and payrolls. A measure of private-sector activity in the U.K. dropped to its lowest level since early 2009.
"Every U.K. company that's directly affected by the referendum is drawing up contingency plans, so you'll naturally get a hit to investment and confidence," said David Stubbs, global market strategist at J.P. Morgan Asset Management.
"But the situation in the U.S. remains one of solid, steady data, with twin pillars of support from the consumer and the housing market," Mr. Stubbs added.
Asian stocks fell Friday, with Japan's Nikkei Stock Average losing 1.1%. The index ended up 0.8% for the week.
The response of central banks in the aftermath of the Brexit vote has been a key concern for investors.
On Thursday, European Central Bank chief Mario Draghi steered clear of hinting at fresh stimulus measures. After the ECB's and the Bank of England's inaction over the past two weeks, interest-rate decisions in the coming week from the U.S. Federal Reserve and Bank of Japan will be closely watched by market participants.
"This recent rally has been so dependent on expected support from central banks, so there's definitely an element of nervousness to it," said James Athey, investment manager at Aberdeen Asset Management.
Write to Corrie Driebusch at corrie.driebusch@wsj.com and Mike Bird at Mike.Bird@wsj.com
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