Stocks rise slightly as Dow looks to recover from worst session since March 2023: Live

Stocks were slightly higher on Friday, following the worst session in more than a year for the Dow Jones Industrial Average.

The Dow rose 35 points, or 0.1%. The S&P 500 gained 0.5%, while the Nasdaq Composite rose 0.7%.

Shares of Workday fell more than 10% after the company reduced its subscription revenue guidance for the full year. Intuit also fell 8.3% on weak forward guidance. Meanwhile, Deckers Outdoor surged 11% after posting an earnings and revenue beat.

During Thursday’s session, chipmaker Nvidia added more than 9%, propelled by strong guidance in addition to an earnings beat and a 10-for-1 stock split. Nvidia has become a key bellwether for the broader market, and is the de facto leader of the so-called “Magnificent Seven.” Nvidia was last trading marginally lower Friday.

The rise in the artificial intelligence darling did not help the market, with the three major averages ending Thursday’s session lower. The Dow suffered its worst session since March 2023.

“That NVDA couldn’t support the market underscores that even the most powerful company within the S&P 500 can’t fight the Fed,” said Quincy Krosby, chief global strategist for LPL Financial.

Robust economic data further dented investors’ hopes for rate cuts from the Federal Reserve.

Demand for durable goods was much higher than expected in April, the Commerce Department reported Friday. Orders for long-lasting items such as appliances, cars and airplanes rose 0.7% for the month, slightly below the 0.8% increase in March but far better than the Dow Jones consensus estimate for a 1% decline. Excluding transportation items, orders still accelerated 0.4%. However, new orders were flat, excluding defense.

May services and manufacturing data also surpassed forecasts from economists, according to purchase manager surveys from S&P Global released Thursday. Weekly jobless claims numbers on Thursday also signaled that any weakening in labor market demand may have stalled.

To that end, the S&P 500 is tracking for a weekly loss of 0.7%, while the Dow is on pace to drop about 2.4%. The Nasdaq is the outperformer, with a modest gain of 0.3%.

The Dow is set to snap a five-week winning streak and the S&P 500 to break a four-week positive streak as concern the Fed won’t cut interest rates this summer overshadowed Nvidia’s blockbuster report. After some strong economic and labor data this week, Goldman pushed its forecast for the Fed’s first rate cut back to September from July.

“Inflation is likely to be much improved by September, but hardly perfect, and still at a year-on-year rate that makes cutting a less than obvious decision,” wrote Goldman economist David Mericle.