Fears of a recession caused a 2.9% price plunge on Wednesday but the Standard & Poor's 500 index rebounded sharply by Friday on news of strong retail sales in July and closed the week at 2888.68, less than 5% from its all-time high.

Retail sales — excluding gasoline because of their volatility — surged 3.7% in the 12 months through July, following its 3.8% spike in June and 3.1% rise in May.

Since 70% of U.S. economic activity comes from consumers, the continued strength in retail sales dampened fears of a recession.