US stocks bounce back ahead of long weekend

for the day are expected to be light, with the U.S. equity market closed on Monday for Memorial Day.

All three main indexes fell on Thursday as economic data pointing to rising price pressures dented bets of this year, taking the limelight off 's blowout quarterly results that reinforced investor faith in 's bet on artificial intelligence.

Nvidia shares rose 0.6% after jumping more than 9% a day earlier, closing above the key $1,000 mark and adding around $218 billion to its market value.

reported the company's most advanced developed for China had a weak start, with abundant supply forcing it to be priced below Huawei's rival chip.

Other megacap stocks including , and also jumped between 0.8% and 2.5%.

Communication services gained 1.2%, leading gains across major S&P 500 sectors.

Fresh data showed orders for rose 0.7% in April, compared with a 0.8% dip expected by economists polled by Reuters, while the University of Michigan's final consumer sentiment index for May came in at 69.1, above expectations of 67.5.

"The prior month's data was revised (lower) and if we look at that in combined with a decent reading this month, it tells us as far as the bigger picture, durable goods are going to be somewhat muted for the quarter," said Brian Klimke, chief market strategist at Cetera Investment Management.

"Our view is that the Fed may cut rates more than the market is anticipating. We're in the camp that we could see as many as three cuts this year."

Traders expect the U.S. central bank to ease its interest rates by 34 basis points by year-end. pushed back its call for a first rate cut to September from July.

Small-cap stocks regained some ground, with the Russell 2000 rising 0.9% after Thursday's losses.

U.S. equity funds secured substantial inflows in the week ended May 22, boosted by optimism around robust corporate earnings. LSEG Lipper data showed investors pumped $9.9 billion into U.S. equity funds, significantly higher than $4.1 billion a week earlier.

At 11:45 a.m. ET, the Industrial Average was up 80.15 points, or 0.21%, at 39,145.41, the S&P 500 was up 35.45 points, or 0.67%, at 5,303.29, and the Composite was up 176.56 points, or 1.05%, at 16,912.60.

Workday dropped 13.9% after the human resources software provider cut its annual subscription revenue forecast.

Ross Stores jumped 9.8% after posting first-quarter results above estimates and raising its annual profit forecast.

Advancing issues outnumbered decliners by a 3.22-to-1 ratio on the NYSE and by a 1.89-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and five new lows, while the Nasdaq recorded 47 new highs and 82 new lows.