US stocks rallied for the last three sessions of the week, giving investors a respite from the mini-correction that started on May 2.
On Friday, the S&P 500 Index rose 5.41 points, or 0.41 percent, to end at 1,331.10. The Dow Jones Industrial Average rallied 38.82 points, or 0.31 percent, to close at 12,441.58. The Nasdaq Composite rallied 0.50 percent.
The three consecutive days of gains marked a welcomed break for investors in the midst of a month-long mini-correction.
The downturn was sparked by several concerns, including the looming Greek debt restructuring, end of QE2 on June 30, and the US budget impasse and debt ceiling. Moreover, economic data, particularly from housing, were bearish.
Last week, economic data was mostly weak.
Monday’s European PMI readings were worse-than-expected, Wednesday’s durable goods orders plunged, and Thursday’s GDP and unemployed claims data were downbeat. One bright spot late in the week was Friday’s revised University of Michigan consumer sentiment survey for May.
A quick glance at the May mini-correction chart shows big declines interspersed with two or three days of rallies. The three-day rally last week, then, may just be a brief interruption in the downtrend.