US STOCKS-Wall St extends recovery at end of volatile week

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* Chip stocks jump after report U.S. nears $52 bln chip
funding
* Disney shares drop as subscriber additions disappoint
* Airbnb dips after quarterly results
* Indexes up: Dow 0.83%, S&P 1.24%, Nasdaq 1.84%

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By Medha Singh and Sruthi Shankar
May 14 (Reuters) - U.S. stocks rose on Friday with
broad-based gains, as investors looked at economic recovery
prospects after worries about a prolonged period of inflation
sparked a volatile week of trading.
Futures pared some gains after data showed U.S. retail sales
unexpectedly stalled in April, as a boost from stimulus checks
faded, but an acceleration is likely in the coming months amid
record savings and a reopening economy. "The disappointing retail sales numbers shouldn't really
come as a huge surprise," said Mike Loewengart, managing
director of investment strategy at E*TRADE Financial.
"It probably supports the point of view that the dip we
experienced this week is a buying opportunity as all sectors
march toward full recovery."
Wall Street's major indexes are set for their steepest
weekly drop since February after stronger-than-expected
inflation data, signs of labor shortage and higher commodity
prices this week raised bets the Federal Reserve would have to
pare back its crisis level support.
The three main indexes snapped a three-day losing streak on
Thursday after better-than-expected weekly jobless claims data.
In signs that life was returning to normal, revised guidance
from the U.S. Centers for Disease Control and Prevention said
fully vaccinated people do not need to wear masks outdoors and
can avoid wearing them indoors in most places. All 11 major S&P sectors were higher, with energy .SPNY
leading gains as oil prices gained ground. O/R
The CBOE volatility index .VIX , a measure of investors'
anxiety, slipped to 19.55 after spiking to a more than two-month
high earlier this week.
"Market is in a waiting game ... we expect a significantly
higher level of volatility because of this tug of war between
data and data being so good that it will drive inflation
higher," said Phil Blancato, chief executive officer of
Ladenburg Thalmann Asset Management in New York.
At 11:23 a.m. ET, the Dow Jones Industrial Average .DJI
was up 281.54 points, or 0.83%, at 34,302.99, the S&P 500 .SPX
was up 50.94 points, or 1.24%, at 4,163.44. The Nasdaq Composite
.IXIC was up 241.30 points, or 1.84%, at 13,366.29.
The Philadelphia SE semiconductor index .SOX jumped 2.2%
after sources said a group of U.S. senators were close to
unveiling a $52-billion proposal on Friday that would
significantly boost U.S. semiconductor chip production and
research over five years. Chip stocks helped the technology .SPLRCT sector provide
the biggest boost to the S&P 500.
Mega-cap growth stocks, which were beaten down this week on
concerns over their lofty valuations, led gains in early trading
with Apple Inc AAPL.O , Amazon.com Inc AMZN.O and Microsoft
Corp MSFT.O gaining about 1% each and Tesla Inc TSLA.O
adding 2.3%.
Disappointing subscriber additions for Walt Disney Co's
DIS.N namesake streaming service overshadowed
better-than-expected overall profits, driving down shares of the
entertainment company by 3.4%. Airbnb Inc ABNB.O rose 2.4% after beating analysts'
expectations for first-quarter gross bookings and revenue.
Advancing issues outnumbered decliners for a 4.70-to-1 ratio
on the NYSE and a 4.28-to-1 ratio on the Nasdaq.
The S&P index recorded 16 new 52-week highs and no new low,
while the Nasdaq recorded 55 new highs and 39 new lows.