Stocks on Wall Street are bouncing back after experiencing the worst day since April, with most U.S. stocks rising on Friday. The S&P 500 was up 0.6% in afternoon trading, erasing most of its losses for the week, while the Dow Jones Industrial Average remained mostly unchanged. The Nasdaq composite saw a 1% increase.
Deckers Outdoors saw a significant jump of 13.3% after reporting stronger profit and revenue for the latest quarter than expected. Ross Stores also experienced a leap of 8.2% after reporting better profit for the quarter, despite revenue only slightly surpassing expectations.
CEO Barbara Rentler of Ross Stores highlighted challenges faced by low-to-moderate income customers, citing prolonged inflation as a factor squeezing purchasing power. Economist Brian Jacobsen noted that while high-income consumers are faring well, lower-income consumers are struggling.
The market received a boost from a report showing that sentiment among U.S. consumers weakened less in May than initially suggested. Additionally, U.S. consumers’ expectations for inflation in the coming year rose by less than feared.
Worries about high inflation have impacted the stock market, with concerns about the Federal Reserve potentially raising rates if inflation worsens. Goldman Sachs economist David Mericle adjusted his forecast for the Fed’s first rate cut to September from July.
Despite the overall market volatility, Nvidia reported strong profits, contributing to its status as one of Wall Street’s most influential stocks. However, Workday fell 15.4% despite reporting stronger profit for the quarter.
Stock markets abroad saw declines in Asia and Europe, with indexes falling in Hong Kong, Seoul, and Tokyo. Overall, the market remains volatile as investors navigate economic data and inflation concerns.
