US stocks rebounded on Friday after two days of steep losses as data showed US consumer sentiment and wholesale business inventories were stronger than expected. The S&P 500 fell 3.6 percent in the previous two sessions, its worst two-day performance in slightly over a year, following the US election as investors shifted their focus back to the looming "fiscal cliff" and the euro zone's debt crisis.
The Dow Jones industrial average gained 62.90 points, or 0.49 percent, to 12,874.22. The Standard & Poor's 500 Index rose 12.12 points, or 0.88 percent, to 1,389.63. The Nasdaq Composite Index climbed 32.47 points, or 1.12 percent, to 2,928.05. The S&P 500 closed on Thursday below its 200-day moving average for the first time in five months, a bearish technical signal that could keep stocks under pressure. Groupon Inc's shares slid 27.2 percent to $2.85 a day after the daily deal company's results fell short of Wall Street's expectations.