Updates with afternoon trading, adds analyst comment and market details

By Noel Randewich and Sukriti Gupta

Feb 14 (Reuters) - The S&P 500 crept up toward record highs on Friday, with Nvidia NVDA.O climbing and Tesla TSLA.O dipping, while Treasury yields declined a day after U.S. President Donald Trump unveiled reciprocal tariff plans but stopped short of imposing new ones.

Yields across government bonds slipped for a second straight day after data showed U.S. retail sales fell more than expected in January, dropping 0.9% last month after an upwardly revised 0.7% increase in December.

The yield on the 10-year note US10YT=RR fell about 7 basis points, last at 4.44%.

Nvidia added almost 2%, while Apple AAPL.O moved 1.1% higher. Microsoft MSFT.O dipped about 0.5% and Tesla lost 0.6%.

Trump tasked his economics team on Thursday to devise plans for reciprocal tariffs on every country taxing U.S. imports, although the directive stopped short of imposing fresh tariffs.

Howard Lutnick, Trump's pick for commerce secretary, said the administration would address affected countries individually and said studies of the issue would be completed by April 1.

The imposition of tariffs on steel and aluminum imports, a bigger-than-expected rise in January's consumer prices and hawkish comments from Federal Reserve Chair Jerome Powell added to market volatility this week.

"It's all about Trump right now. All the other stuff is just noise," said Dennis Dick, a trader at Triple D Trading in Ontario, Canada. "What everyone is focused on is, 'What is Trump going to do next, and where are his tariff wars going?'"

All three major indexes were set for robust weekly gains, with the S&P 500 .SPX currently just shy of its record high hit three weeks ago.

Stocks also received a boost earlier this week after data showed U.S. producer prices increased in January, while key elements in the core Personal Consumption Expenditures index, a measure closely tracked by the Fed, were benign or lower.

Traders are pricing in at least one 25 basis-point interest rate cut by the end of the year, with a roughly 50% chance of an additional cut, according to LSEG data.

The S&P 500 was up 0.08% at 6,119.88 points.

The Nasdaq gained 0.31% to 20,008.17 points, while the Dow Jones Industrial Average was down 0.22% at 44,614.72 points.

Of the 11 S&P 500 sector indexes, six rose, led by energy .SPNY, up 0.55%, followed by a 0.52% gain in communication services .SPLRCL.

Airbnb ABNB.O jumped 14.4% after the vacation home rentals company posted higher quarterly revenue.

DaVita DVA.N dropped 10.5% after the dialysis firm projected annual profit below estimates. Warren Buffett's Berkshire Hathaway BRKa.N also sold some of its shares in the company.

Applied Materials AMAT.O shed 6.4% after the chipmaking equipment maker forecast second-quarter revenue below estimates.

U.S. markets will be closed on Monday for the Presidents Day holiday.

Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.2-to-one ratio.

The S&P 500 posted 36 new highs and 7 new lows; the Nasdaq recorded 118 new highs and 72 new lows.

(Reporting by Noel Randewich in Oakland, California, and Shashwat Chauhan and Sukriti Gupta in BengaluruEditing by Maju Samuel and Matthew Lewis)

((Shashwat.Chauhan@thomsonreuters.com;))