US growth revised down, no QE3, stocks rally anyway

US economic reports on Friday were negative.

The US economy grew at a 1 percent annualised rate in the second quarter, less than the previously-estimated 1.3 percent.

The Thomson Reuters/University of Michigan sentiment index fell to 55.7 in August from 63.7 in July.

Despite the weak economic data, Fed chairman Ben Bernanke gave no sign of further monetary stimulus in his speech at Jackson Hole.

And yet, US stocks finished the day up, the S&P 500 rising 1.5 percent to close at 1,176.8. For the week, the S&P 500 rose 4.7 percent, its first weekly rise after four consecutive weeks of losses.

European and Asian stock markets also snapped four-week losing spells this week. The Stoxx Europe 600 Index advanced 1.1 percent to 225.52 this week while the MSCI Asia Pacific Index rose 0.7 percent to 120.31.

The stock market rally is on.