STORY: U.S. stocks rebounded on Friday at the end of a holiday-shortened week as a broad rally sent all three major stock indexes to a higher close.

The Dow gained eight-tenths of one percent while the S&P 500 advanced one and a quarter percent and the Nasdaq rose one and three-quarters percent.

Megacap growth companies including Tesla and Nvidia contributed significantly to the gains though the major indexes all posted modest declines for the week.

While the S&P has fallen three of the past four weeks.

Alexis Investment Partners President Jason Browne says he is cautiously optimistic on stocks though he sees more volatility ahead.

"It's been a rough well month really. So, it's natural that we get a bit of bounce. I'm hoping that you know, we're kind of working through a bottoming process here. I think in general, we're just sort of working things off. I don't expect anything to get too terrible in terms of this current pullback that we're having. Obviously, small caps are closer to a correction and so forth. But we still need to go through some key levels to get back to an area where I'd say we've resumed an uptrend if that makes sense."

On the economic front, a manufacturing survey rose to its highest level since March.

A run of fairly robust data has called into question the need for additional interest rate cuts from the Federal Reserve in the near term due to the possibility of re-igniting inflationary pressures.

Stocks on the move included U.S. Steel which dropped 6.5% after U.S. President Joe Biden blocked its proposed sale to Japan's Nippon Steel citing national security concerns.

And Citigroup rose 1.5% after rival Wells Fargo said it could double in value over the next three years as the Wall Street lender's profits surge.