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Tech stock rally helps snap losing streak as rough week ends

Specialists Thomas McArdle, left, and Jay Woods work

Specialists Thomas McArdle, left, and Jay Woods work on the floor of the NYSE on Thursday. Photo Credit: AP / Richard Drew

Stocks rebounded Friday, clawing back some of the week's steep losses, but the turbulent trading of the last few days left no doubt that the relative calm the markets enjoyed all summer had been shattered.

Major stock indexes ended the week down about 4 percent, their worst weekly loss in six months.

Big technology and consumer-focused companies led the recovery Friday.

A major factor cited by market watchers for the pullback was a sharp increase in interest rates, which can slow the economy and make bonds more attractive to investors relative to stocks.

Apple climbed 3.6 percent to $222.11 and Microsoft gained 3.5 percent to $109.57. Amazon jumped 4 percent to $1,788.41. Those are the three most valuable companies in the U.S., and they suffered startling declines the last few days: on Wednesday each took its biggest loss in more than two years. That made for a dramatic end to three months of calm on the U.S. market.

The S&P 500 index rose 38.76 points, or 1.4 percent, to 2,767.13 to end a six-day losing streak. The benchmark index tumbled 4.1 percent this week, and it's down 5.6 percent since from its latest record high, set Sept. 20. Thanks in part to the big gain for technology companies, the Nasdaq composite jumped 167.83 points, or 2.3 percent, to 7,496.89.

The Dow Jones Industrial Average rose as much as 414 points early on, then gave it all up and turned slightly lower. It rebounded and finished with a gain of 287.16 points, or 1.1 percent, at 25,339.99.

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