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Stocks to rebound from year's second-worst drop

Stocks are set to rebound from their second-worst decline of the year.

The market fell 2.2 percent in the prior session, its biggest drop since a 2.5 percent fall on June 1, as evidence mounted of slowing manufacturing growth worldwide, a threat to corporate profits.

After falling for two consecutive sessions, the index is down 1.3 percent for the week.

Investors will eye banking shares after ratings agency Moody's downgraded 15 of the world's biggest banks on Thursday, lowering credit ratings by one to three notches to reflect their risk of losses from volatile capital market activities.

European shares extended the previous session's losses, unable to rebound from poor macroeconomic data.

The leaders of Germany, France, Italy and Spain will try to find common ground in Rome to restore confidence in the euro zone ahead of a full EU summit next week, which Italy's prime minister called a defining moment.

Johnson & Johnson said that U.S. regulators have declined to approve a new use for its Xarelto blood clot preventer to reduce the risk of heart attacks and strokes in patients with acute coronary syndrome.

Best Buy Co Inc's acting CEO promised on Thursday to tackle the unwieldy size of the world's largest consumer electronics chain, just months after investors gave a thumbs-down to its restructuring efforts.

Asian shares fell amid fears about global growth, spurred by weak manufacturing data from the United States, Europe and China.

Reuters contributed to this report.