MARKET SNAPSHOT: U.S. Stocks Stage Friday Rally But Close Week In The Red

By Anora Mahmudova and Carla Mozee, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks rebounded on Friday, recovering most of the previous session's steep losses as Thursday's rout inspired bargain hunters, with most of Friday's broad-based gains led by energy and technology names.

But notwithstanding Friday's solid gains, major indexes weren't able to erase what has otherwise been a tough week for stocks. Most benchmarks finished the week with losses.

The S&P 500 (SPX) closed 16.86 points, or 0.9%, higher at 1,982.854, ending the week 1.4% lower.

The Dow Jones Industrial Average (DJI) jumped 167.35 points, or 1%, to 17,113.19, but rang up a weekly loss of 1%. The blue-chip index moved more than 100 points in each of the five sessions this week. Nike's 12% jump on better-than-expected results added 61 points to the Dow industrials.

The Nasdaq Composite (RIXF) gained 45.45 points, or 1%, to 4,512.19 but was 1.5% lower over the week.

"September is a difficult month and short-term volatility is normal," said Kenny Polcari, director of NYSE Floor Operations on behalf of O'Neil Securities, Inc.

"We've had lots of reason to be nervous this week and as soon as some of the technical support levels were hit we saw [automated algorithms] kick in. Market will now test those resistant levels," Polcari added.

Markets also weighed stunning news that Bill Gross, founder is leaving the firm he founded, to join Janus Capital. The news sent 10-Year Treasury yields higher. Also read: Investors should think twice about following Bill Gross to Janus

Data: Helping to hearten markets was news that the U.S. economy in the second quarter matched its best performance since the recession. But whether an accelerated pace of growth in the year ahead can be sustained is still unclear.

The U.S. economy grew at a 4.6% annual pace in the second quarter. The increase in real gross domestic product was revised up from 4.2%, mainly because of higher exports and business investment, the Commerce Department said Friday. The biggest gains came in business investment, a good sign for the economy in the months ahead.

Separately, the final September reading on the University of Michigan/Thomson Reuters consumer sentiment index remained steady at the highest level since July 2013 and well above a final August level of 82.5.

Stocks to watch: Apple Inc. shares (AAPL) rallied 2.9% on Thursday after a nearly 4% drop during the previous session, as the company tried to calm concerns about its new iPhone 6 Plus bending claims. One analysts reiterated his 'buy' rating and in a note to clients told investors to ignore the 'media blitz'. Also read: It's time to chill out over 'bendgate' and buy Apple

Another tech name, chip maker Micron (MU) gained 6.7% after fourth-quarter results topped Wall Street's estimates late Thursday. For more on today's movers, read our Mover & Shakers column.

Meanwhile, Nike (NKE) shares jumped 12% after the athletic apparel and gear maker late Thursday posted better-than-expected earnings. Also read: After 34 years as a public company, Nike is still a growth stock

Other markets: Overnight, Australia's S&P/ASX 200 erased its gains for the year, taking cues from Wall Street's selloff and a slump in iron-ore prices. European stocks were higher, but major benchmarks recorded weekly losses.

Gold futures (GCZ4) turned down nearly $3 an ounce while oil futures(CLX4) headed slightly higher.

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