• US stocks traded higher on Friday, attempting to rebound from a 2-day sell-off.

• Inflation worries from Fed minutes and hot economic data sparked the Dow’s worst sell-off in a year on Thursday.

• Investors are awaiting next week’s release of PCE data to gauge if inflation is falling or not.

US stocks edged higher on Friday as investors seek a rebound following a two-day sell-off in the market.

The Dow registered its worst sell-off in over a year on Thursday, even in the face of a strong rally in Nvidia stock following its blockbuster first-quarter earnings report.

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

Inflation concerns sparked the two-day sell-off, with Fed minutes released on Wednesday highlighting lingering concerns among Fed officials about cutting interest rates too soon. Those concerns were vindicated on Thursday, with the release of PMI data showing a still-hot economy and signs of rising prices.

The chances of a Fed interest rate cut were pushed back to the Fed’s November FOMC meeting, instead of the first cut occurring in September, according to the CME’s FedWatch Tool.

Investors will be paying close attention to next week’s release of PCE data to gauge if inflation is moving lower or not.

“Next Friday’s release of the PCE report could offer the market a decidedly positive catalyst if the data comes in cooler than expectations. Absent that, even if the PCE remains steady the market could be satisfied that inflation remains somewhat contained, but yesterday’s market action suggests that investors and traders alike are losing patience with the Fed’s inability to quell prices that insist on rising,” Krosby said.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday: 

Here’s what else is going on today:

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil jumped 0.27% to $77.08 a barrel. Brent crude, the international benchmark, was higher by 0.06% to $81.41 a barrel.

• Gold edged higher by 0.24% to $2,342.80 per ounce.

• The 10-year Treasury yield rose one basis point to 4.49%.

• Bitcoin dropped 0.92% to $67,323.

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