Still, troughs in volatility haven't always led to declines in stocks. When the VIX fell below 17 and reached a 20-month low in 1998, stock prices didn't peak until two years later.
Benchmark indexes were helped this week by a spate of government reports that showed the US economy grew at a faster-than-expected rate in the third quarter, consumer spending increased for a fifth month in November, and durable goods orders rebounded.
Gross domestic product expanded at a 4 percent annual rate from July through September, more than a previous estimate of 3.9 percent. Last month's personal spending rose 0.2 percent, suggesting income growth is enough to fuel demand.
The durable goods report fueled an advance in manufacturers including United Technologies Corp, the maker of Pratt & Whitney jet engines. Its stock climbed 1.6 percent for the week to US$105.52. 3M Co, the maker of Scotch-brand tape and films used on liquid crystal displays, gained 2.4 percent to US$82.55.
Of the 30 stocks in the Dow average, only McDonald's Corp, the world's largest restaurant chain, and Verizon Communications, the biggest US local-phone company, declined for the week.
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