Volatile markets end tough, losing week

U.S. stocks bounced between gains and losses Friday and ended the day with modest gains that did little to ease a brutal week of selling or quell fears that have hammered the market.

Pressure on investors came from new indications that the global economy may be slipping into another recession. As a result, both the Dow and Standard & Poor's 500 were off nearly 7 percent for the week, and the Nasdaq was down almost 6 percent.

Stocks opened slightly lower Friday and then fluctuated throughout the day. The Dow Jones industrial average closed up 37.7, or 0.4 percent, at 10,771.5. The average of 30 large companies fell below its 2011 closing low of 10,719 several times Friday morning but then recovered.

The Standard & Poor's 500 index closed up 6.9 points, or 0.6 percent, to 1,136.4. The Nasdaq composite index ended up 27.6, or 1.1 percent, at 2,483.2.

Europe appears no closer to solving the debt crisis that threatens some of its biggest banks, and once again U.S. political leaders are in another standoff over spending that could force a government shutdown.

Until Friday, shares had fallen every day in the past week. John Merrill, chief investment officer at Tanglewood Wealth Management in Houston, said Friday's respite might not last. "Nothing goes in a straight line, even markets that are declining steeply," he said.

Merrill said the market was moderating as traders bought shares that looked like bargains after the week's selling. But he said the problems that have weighed on stocks for months show no sign of letting up.

Bargain seekers "bring some stability into the market for a day or two, until they've used up their buying power, then the macro issues surface again" and volatility returns, he said.

The Dow has fallen more than 15 percent since its recent peak on July 21. It fell below its 2011 closing low of 10,719, reached Aug. 10, several times Friday morning.