Stock market today: Nasdaq sets new record as Wall Street regains previous losses

NEW YORK (AP) U.S. stocks rebounded from Wall Street's worst day since April. The S&P 500 gained 0.7% to regain all its losses from earlier in the week. He notched a fifth straight week of wins and is just shy of his record set Tuesday. The Dow Jones Industrial Average rose less than 0.1% and the Nasdaq composite gained 1.1% to surpass its all-time high set earlier this week. Nvidia climbed again after its blowout earnings report earlier this week to help push the market higher. Treasury yields held steady after a better-than-expected consumer confidence report.

THIS IS A LATEST UPDATE. Earlier AP story follows below.

NEW YORK (AP) Most U.S. stocks were higher Friday, rebounding from Wall Street's worst day since April.

The S&P 500 was up 0.6% in afternoon trading, erasing most of its losses from the week. It has gained ground over the past four weeks. The Dow Jones Industrial Average was virtually unchanged as of 2:59 p.m. Eastern Time, and the Nasdaq Composite Index was up 1%.

Deckers Outdoors jumped 13.3%, one of the biggest gains in the market, after reporting higher-than-expected earnings and revenue for the latest quarter. The company behind the Hoka, Ugg and Teva brands also gave revenue forecasts for the next financial year that were in line with analysts' expectations.

Ross Stores also led the market with a jump of 8.2% after the retailer reported a profit for the latest quarter that was better than analysts expected. This is despite its revenue barely exceeding expectations as customers continue to refrain from purchasing non-essential products.

CEO Barbara Rentler said several challenges, including prolonged inflation, continue to reduce the purchasing power of our low-to-moderate income customers.

Although data on the overall, or macroeconomic, economy shows continued strength in U.S. household spending, the numbers beneath the surface maybe it's not as encouraging.

Walmart and Target tell us that higher-income consumers are doing well, but are starting to lower prices, said Brian Jacobsen, chief economist at Annex Wealth Management. The low-income consumer is struggling. The macro often focuses too much on the average and the average is distorted by high-end households.

The market was slightly boosted Friday by a report showing that U.S. consumer confidence overall weakened less in May than preliminary data suggested. Perhaps more importantly, the University of Michigan report also said that U.S. consumers' inflation expectations for the coming year rose less in May than expected.

Concerns about stubbornly high inflation caused the U.S. stock market to fall recently set records. The weakness began after the Federal Reserve released the minutes of his last political meetingwhich showed some officials talking about the possibility of raising rates if inflation worsens.

Stocks fell further after reports Thursday indicated that the US economy is stronger than expected. Such strength may actually scare Wall Street because it could maintain upward pressure on inflation. That could at least delay the Federal Reserve's decision to provide relief to financial markets by cutting its main interest rate, which is at its highest level in more than 20 years.

Goldman Sachs economist David Mericle pushed back his forecast for a first rate cut by the Fed to September, in part because of Thursday's reports on U.S. business activity and unemployment.

Treasury yields rose this week on those concerns, but were mixed Friday following the consumer confidence report. The 10-year Treasury yield fell to 4.47% from 4.48% Thursday evening. The two-year yield, which more closely tracks expectations for Fed action, rose to 4.95% from 4.94%.

This week's stock struggles came despite another Nvidia's soaring earnings report, which has become one of the most influential stocks on Wall Street due to the frenzy around artificial intelligence technology. The fervor around AI has pushed some stocks to heights that critics have called overblown, but Nvidias breathtaking growth and forecasts suggest this could continue.

Elsewhere on Wall Street on Friday, Workday fell 15.4% despite a profit for the latest quarter that was higher than analysts expected. The company, which helps businesses manage their people and money, gave forecasts for future subscription revenue that were slightly lower than Wall Street estimates.

In foreign stock markets, indices fell across much of Asia and Europe. They sank 1.4% in Hong Kong, 1.3% in Seoul and 1.2% in Tokyo.

___

AP Business writers Matt Ott and Elaine Kurtenbach contributed.

Stan Choe, Associated Press