The Dow rose more than 100 points, and the S&P 500 rose 0.4% and Nasdaq was up 0.3%. The Dow got a big boost from Nike (NKE), which rose 9% after reporting stellar earnings and strong growth in China.
Despite the slight gains, all three major indexes remain down about 5% on the week and more than 10% in December. Through Thursday, the Dow had lost 1,240 points this week and 2,679 points in December. Stocks are on pace for the worst December since the Great Depression, and the Nasdaq briefly entered a bear market Thursday.
Oil, the Russell 2000, the Dow transports index, and stock markets in China, Italy, Germany, Japan and South Korea are all in bear markets, too.
Investors are worried about the prospect of a global economic slowdown. Political chaos from Brexit, a looming US government shutdown and the resignation of US Defense Secretary James Mattis is stoking fear, too. And the Federal Reserve added to those concerns this week by signaling that its rate-increase plan will continue into 2019 despite downgrading its economic growth forecast.
European markets were mostly lower and Asian markets closed mixed.
Yet light volume and some Christmas cheer brightened investors' outlook Friday, albeit very slightly. The US Commerce Department revised third-quarter GDP up a tenth of a percentage point, so that's some positive news -— albeit backward-looking.
Investors have some reason for optimism. The S&P 500 is trading at just 14.5 times next year's expected earnings. That's far lower than the historical average of 16 times earnings, suggesting that the sell-off has been overdone. Stocks are cheap, presenting buying opportunities for smart investors willing to take on a bit of risk.
Still, fear is the predominant emotion guiding Wall Street, and a small bit of bad news could be enough to tip the scales once again.
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