The U.S. stocks rose on Friday after choppy trading on a series of mixed economic data, enabling the investors a less anxious weekend.
Despite the two-day rally, the three major indexes still posted an average 2-percent fall and the financial sector remained weak.
The Dow Jones industrial average gained 125.71 points, or 1.13 percent, to 11,269.02. The Standard & Poor's 500 was up 6.17 points, or 0.53 percent, to 1,178.81. The Nasdaq Composite Index rose 15.30 points, or 0.61 percent, to 2,507.98.
According to the Thomson Reuters/University of Michigan survey, consumer sentiment for Aug. declined to 54.9, its lowest level in more than 30 years, as consumers were depressed by high unemployment, low wages and the debt ceiling debate. Economists expected a reading of 63.0.
And a separate report showed that businesses increased their inventories in July by the smallest amount since May 2010.
But the U.S. Commerce Department said that retail sales strengthened in July by 0.5 percent, led by a spurt in auto sales, which continued to rebound, rising 0.4 percent, following a 0.7 percent jump in June. This added signs of an improving economy.
In Europe, regulators of major European exchanges banned the short selling of financial shares, trying to protect financial companies from speculators and to help restore market confidence. As a result, European bank stocks rallied and pared some this week 's losses on Friday.
Analysts said that the markets were still fragile and sensitive as uncertainties about U.S. and European economies remained. They predicted equities will still see great volatility next week.
