Economic data pointing to modest growth gave investors enough courage to find bargains after the week's selloff. With orders for durable goods — those made to last more than three years — rising by just 0.3 percent in February, investors felt that demand was sluggish enough to forestall rising prices.

But the last hour of trading ahead of the Good Friday holiday saw a pullback in an already weak relief rally, prompted in part by rising crude oil prices. Analysts said many investors remain skeptical that the Federal Reserve's interest rate hikes will stem inflation without damaging the economy.

"The market was in a severely oversold condition because of all these inflation fears," said Peter Cardillo, chief strategist and senior vice president at S.W. Bach & Co. "But I still think there's a bumpy road ahead for a while. The market really needs assurances that the Fed will be able to keep ahead of inflation."

The stock market tumbled to its third straight week of losses after the Federal Reserve on Tuesday confirmed that inflationary pressures were building.