*

US single-family housing starts tumble in July

*

Jackson Hole symposium looms

(Updates to market close)

By Stephen Culp

NEW YORK, Aug 16 (Reuters) - U.S. stocks ended higher on

Friday, extending their biggest weekly percentage gains of the

year as worries of an economic downturn eased and investors

focused on the Jackson Hole Economic Symposium next week.

The S&P 500 and the Nasdaq notched their seventh straight

session of gains, as stocks recouped losses from a tailspin two

weeks ago. The sell-off, sparked by weak economic data and

heightened recession fears, confirmed the Nasdaq had entered

correction territory.

All three indexes recorded their biggest weekly percentage

gains in months, with the S&P 500 and the Nasdaq posting their

first weekly gain in five.

"What were seeing in today's markets is an extension of the

comeback and the calming of earlier recession fears," said Greg

Bassuk, CEO of AXS Investments in New York.

"The positive economic data is really what's fueling

this rally, giving greater confidence to investors that are

recession is likely to be avoided, and that the Fed will begin

cutting rates in September."

A barrage of high profile economic data this week, including

the Labor Department's consumer price index and a retail sales

report from the Commerce Department, provided assurances that

inflation continues meandering down toward the Federal Reserve's

2% target, and that consumer spending is healthy.

Data on Friday showed U.S. single-family housing starts

dropped to a near 1-1/2-year low in July, while the University

of Michigan's preliminary take on August consumer sentiment

showed stronger-than-expected improvement.

Global central bank officials will speak at the symposium in

Jackson Hole, Wyoming, next week, with Federal Reserve Chair

Jerome Powell's keynote speech on Friday potentially setting

expectations for a U.S. rate cut trajectory.

"All eyes are going to be laser-focused on Powell's comments

next week," Bassuk said. "Market activity this year has

consistently been based on the likelihood and extent of Fed rate

cuts."

Chicago Fed chief Austan Goolsbee said in an interview with

National Public Radio that central bank officials should be wary

of maintaining restrictive policy longer than necessary.

According to preliminary data, the S&P 500

gained 11.34 points, or 0.20%, to end at 5,554.56 points,

while the Nasdaq Composite gained 37.31 points, or

0.21%, to 17,631.81. The Dow Jones Industrial Average

rose 95.62 points, or 0.24%, to 40,658.68.

Shares of Applied Materials ( AMAT ) slid, reversing its

surge after the chip-making equipment firm forecast

stronger-than-expected fourth-quarter revenue.

Amcor ( AMCCF ) posted a bigger-than-anticipated decline in

fourth-quarter sales. The packaging company's U.S.-listed shares

dropped in the wake of the report.