US Stocks Pare Gains on a Big Day 

Updated Sept. 19, 2014 4:44 p.m. ET

The Dow Jones Industrial Average notched a new record, capping an upbeat week in which the Federal Reserve reaffirmed its easy-money policies and investors snatched up the biggest-ever U.S.-listed public stock offering.

The Dow on Friday advanced 13.75, or 0.1%, to a record close of 17279.74. The blue-chip index posted a 1.7% weekly gain.

Investors also applauded news that Scottish voters had rejected a referendum to break from the U.K., heading off concerns about the fate of the world's sixth-largest economy and its currency.

Many investors see smooth sailing for U.S. shares in the months ahead, given the Fed's commitment to low rates into next year and a steadily growing economy.

"The U.S. economic data has been pretty good, and we believe the path of economic momentum will likely continue," said Susan Bao, portfolio manager at the J.P. Morgan U.S. Equity Fund, which manages $11.5 billion. "We believe the trend is going higher, with higher highs and higher lows…If we get a correction, it will be short and shallow."

The S&P 500 made an early push to an intraday record but stalled, closing lower by 0.96 point, or less than 0.1%, to 2010.40. But the S&P 500 ended the week with a 1.3% gain. The Nasdaq Composite Index on Friday shed 13.64, or 0.3%, to 4579.79.

Ms. Bao said her fund has embraced big bets on companies tied to the broader economy, including shares of technology and industrial firms. She said those companies should outperform as the economy steadily improves. She has avoided especially interest-rate-sensitive stocks such as utilities, which are up sharply this year and could take a hit when rates rise. "They're going to be under pressure," she said.

The S&P 500 Utilities index is up 12% this year.

"Nothing's spooked the market yet. All the big stuff this week, and nothing's spooked it," said Tom Carter, managing director at brokerage JonesTrading. "You've been hearing for a while, 'OK, this is the top…we're due…this is the right time of year for us to move a little lower.' And it's not."

The bond market initially weakened as the rejection of Scottish independence removed an element of geopolitical uncertainty, with the yield on the benchmark 10-year Treasury note rising to a two-month high of 2.655% before New York trading began Friday. When bond yields rise, prices drop.

But the high yield on U.S. government bonds compared with other developed-nation sovereign debt drew investors back, pushing the yield down to 2.589% by the end of the day. For the week, the yield on the 10-year note barely budged.

"U.S. bonds should remain especially preferred for foreign buyers given the outlook for inflation, interest-rate differentials" and a rising U.S. dollar, said Christopher Sullivan, who oversees $2.3 billion as chief investment officer at United Nations Federal Credit Union. The dollar Friday hit a fresh six-year high against the yen and a new 14-month high against the euro.

The economic calendar was relatively light Friday. The coming week, however, will see a number of high-profile reports, including data on existing-home sales Monday and new-home sales Wednesday, and a third reading on second-quarter gross domestic product Friday.

Capturing investors' attention Friday was the much-touted trading debut of Chinese e-commerce giantAlibaba Group Holding. BABA +38.07% Alibaba Group Holding Ltd. ADS U.S.: NYSE $93.89 +25.89+38.07% Sept. 19, 2014 4:00 pm Volume (Delayed 15m) : 270.88M AFTER HOURS $93.30 -0.59-0.63% Sept. 19, 2014 7:59 pm Volume (Delayed 15m) : 997,599 P/E Ratio 4.34 Market Cap $231.44 Billion Dividend Yield N/A Rev. per Employee $388,547 09/19/14 Alibaba Debut Makes a Splash09/19/14 Podcast: Alibaba's Red-Letter ... 09/19/14 U.S. Stocks Finish in Mixed Te... More quote details and news » Its shares leapt above the $68-a-share offering price, gaining $25.89, or 38%, to close at $93.89.

Volumes on Friday shot to their highest level since March, with more than 8.6 billion shares changing hands.

Shares of Yahoo YHOO -2.74% Yahoo! Inc. U.S.: Nasdaq $40.93 -1.16 -2.74% Sept. 19, 2014 4:00 pmVolume (Delayed 15m) : 231.10M AFTER HOURS $40.65 -0.28 -0.68% Sept. 19, 2014 7:59 pm Volume (Delayed 15m) : 2.77M P/E Ratio 33.83 Market Cap $40.71 Billion Dividend Yield N/A Rev. per Employee $378,594 09/19/14 Alibaba Debut Makes a Splash 09/19/14 Yahoo's Core Business Value Cu... 09/19/14 Alibaba IPO to Give Yahoo Wind... More quote details and news » fell 1.16, or 2.7%, to 40.93. The company is one of Alibaba's biggest stakeholders and is set to earn about $5.1 billion on the IPO as one of the biggest sellers of shares.

Oracle ORCL -4.21% Oracle Corp. U.S.: NYSE $39.80 -1.75 -4.21% Sept. 19, 2014 4:00 pm Volume (Delayed 15m) : 82.59M AFTER HOURS $39.87 +0.07 +0.18% Sept. 19, 2014 7:59 pm Volume (Delayed 15m) : 4.08M P/E Ratio 16.38 Market Cap $177.30 Billion Dividend Yield 1.21% Rev. per Employee $315,557 09/19/14 Once Again, Oracle Must Reinve... 09/19/14 U.S. Stocks Finish in Mixed Te... 09/19/14 Recap: Alibaba's Big Debut, Mi... More quote details and news » fell 1.75, or 4.2%, to 39.80 after longtime Chief Executive Larry Ellison said late Thursday he would step down from the technology stalwart.