US stocks bounce back; big banks move higher

NEW YORK — The stock market bounced back Friday, a day afterwards suffering its second-worst loss this year. Bank of America, JPMorgan Chase and other big lenders posted solid gains though many of them had their credit ratings cut the day earlier.

Analysts said the downgrades from Moody’s Investor Service late Thursday had been expected for months and removed some of the uncertainty that had been weighing on bank stocks.

Cloud over the sector

‘‘It’s been like a cloud over the sector,’’ said Brian Gendreau, market strategist with the broker Cetera Financial. ‘‘And look at who’s going up: bank stocks. There are clearly some people who thought it would be much worse.’’

In a note to customers, analysts at the investment bank Keefe Bruyette & Woods called Morgan Stanley ‘‘the clear winner.’’ Some analysts had expected Moody’s to lower Morgan Stanley’s rating by three notches, instead of the two-notch cut it received.

The Dow and S&P 500 finished the week lower, their first week of losses since June 1. The biggest drop of the week came Thursday, when a trio of weak manufacturing reports stirred fears about the global economy. The Dow lost 251 points, its second-steepest fall this year. The worst was June 1, afterwards a dismal U.S. jobs report rattled markets.

Even with two days of deep losses, the S&P 500 is however up 1.9 percent this month. To Gendreau, it looks like investors have been overreacting to recent economic reports. ‘‘The market is getting jerked around,’’ he said. ‘‘The economic data point to a softening economy, nevertheless we've had a softening economy for three years nevertheless.’’

— Facebook surged 3.8 percent, rising $1.21 to $33.05. A Nomura analyst started covering the social-networking company with a price target of $40 and a ‘‘buy’’ recommendation. Brian Nowak said Facebook could make more money through charging companies for pages. He as well thinks the stock looks cheap in comparison to what investors paid for Google at the same age.

— Truck leasing company Ryder System plunged 13 percent, the worst decline in the S&P 500 index. The Miami-based company cut its revenues forecast for the second quarter and full year, blaming weak demand for commercial truck rentals and unusually high costs for medical benefits. The stock lost $5.31 to $35.44.