Stocks Bounce Back a Bit After Week's Losses

US stocks rose Friday to turn what would have been one of the market's worst weeks of the year into just a pretty bad one.

• The Dow jumped 498.02 points, or 1.2%, to 42,840.26.
• The S&P 500 rose 63.77 points to 5,930.85 for its best day in six weeks, shaving its loss for the week to 2%.
• The Nasdaq climbed 199.83, or 1%, to 19,572.60.

Superstar stock Nvidia and other Big Tech companies led the market, which got a lift after a report said a measure of inflation the Federal Reserve likes to use was slightly lower last month than economists expected, the AP reports. It's an encouraging signal following recent reports suggesting inflation may be tough to get all the way down to the Fed's 2% goal from its peak above 9%. Friday's better-than-expected inflation data pushed traders to trim their bets for zero interest rate cuts in 2025, which they now collectively see a 16.5% chance of. Easier interest rates can goose the economy by making it cheaper for households and businesses to borrow, but they can also provide fuel for inflation.

On the losing end of Wall Street on Friday was US Steel, which sank 4.9% after saying its fourth-quarter results will likely come in below its earlier forecast. CEO David Burritt said steel prices remain depressed. Danish company Novo Nordisk saw its stock that trades in the US tumble 17% after giving an update on a potential weight-loss treatment that analysts said fell short of expectations. Nike's stock slipped 0.1% despite reporting a better profit for the latest quarter than analysts expected. They were the exceptions. Nearly every stock in the S&P 500 rose, at 93%. Eli Lilly climbed 2.5% following Novo Nordisk's update on its potential treatment for adults with obesity. A stumble for its rival could benefit Eli Lilly, whose Zepbound helps treat obesity.

(More Wall Street stories.)