U.S. stocks ended higher for the fifth straight day on Friday after data showed a surprising pickup in the manufacturing sector, pushing major indexes to their best weekly gains in nearly two years.

The Dow Jones industrial average gained 168.43 points, or 1.36 percent, to 12,582.77. The Standard & Poor's 500 rose 19.03 points, or 1.44 percent, to 1,339.67. The Nasdaq Composite Index rallied 42.51 points, or 1.53 percent, to 2,816.03.

All three indexes gained about 5.5 percent for the week, the best percentage weekly gains in nearly two years.

Friday's strength came after the Institute for Supply Management said its manufacturing purchasing managers' index rose to 55.3 in June from 53.5 in May, which marked the 23rd consecutive month of expansion.

Other data came in was not that upbeat, but did little to hold the rally. U.S. construction spending in May hit a nearly 12-year low, suggesting the sector will remain a drag on the economy.

Signs of economic slowdown in China had little impact on the market either after data showed the manufacturing sector expanded at the slowest pace since February 2009, partly because that most economists believed the growth in China will be still robust enough and the current slowdown is good for its economy.

The U.S. stock market will be closed on Monday for the July 4th holiday and resume trading on Tuesday.