The Nasdaq composite index hit a record high Friday, boosted by strong earnings from Google Inc. The share price of the world's largest Internet company surged above $700 for the first time ever. Meanwhile, a decline in energy stocks sent the Dow Jones Industrial Average lower.

The Dow (INDEXDJX:.DJI) fell 33.80 points, or 0.19 percent, to close at 18,086.45. The Standard & Poor's 500 index (INDEXSP:.INX) edged up 2.35 points, or 0.11 percent, to end at 2,126.64. The Nasdaq composite (INDEXNASDAQ:.IXIC) gained 46.96 points, or 0.91 percent, to finish at an all-time high of 5,210.14.

The Nasdaq also hit an intraday high of 5,210.16.

Nine out of the 10 S&P 500 sectors closed lower, led by a 1 percent decline in energy, while the information technology sector rallied 1.7 percent.

Dow component Intel Corp. (NASDAQ:INTC) led the index lower after shedding 1.5 percent. The world's largest technology services company, International Business Machines Corp. (NYSE:IBM), and iPhone maker Apple Inc. (NASDAQ:AAPL) both gained nearly 1 percent.

Shares of Google Inc. (NASDAQ:GOOGL) surged 16 percent to rise above $700 one day after the company posted strong second-quarter earnings driven by advertising revenue. The stock rallied 16.3 percent to close at $699.62 after soaring as high as $703.

The news may not have been all good for Google. S&P Capital IQ downgraded shares of Google to Hold from Strong Buy. The firm acknowledged Google’s growth and “very strong balance sheet” that could be used for buybacks and dividends, however, there were “ongoing legal and regulatory risks” for potential market share losses, Scott Kessler, equity analyst at S&P Capital IQ, said in a research note Friday.

The firm has a 12-month price target of $715. Shares of Google have gained more than 30 percent since January. 

Meanwhile, shares of Etsy Inc. (NASDAQ:ETSY) surged 30 percent to its biggest one-day gain since its initial public offering on April 16. The online crafts seller received a major boost Friday after Google Chief Business Officer Omid Kordestani mentioned the company during its earnings call with shareholders a day earlier.

Kordestani said Etsy was an example of a web company gaining more business due to Google's recent move to index information and pages within third-party apps. "Developers like Etsy are already seeing a boost in traffic as a result of deep linking," said Kordestani.

Separately, U.S. consumer prices rose for a fifth-straight month in June, a sign that inflation is firming. The numbers could help the Federal Reserve make a case for raising interest rates later this year. The consumer price index rose 0.3 percent last month after increasing 0.4 percent in May, the Labor Department said Friday.