The stock market bounced back Friday, a day after suffering its second-worst loss this year. The unlikely leaders: banks.

JPMorgan Chase helped lead the Dow Jones industrial average up on Friday. The gains for banks came even though Moody's cut the credit ratings on JPMorgan and 14 other large banks after the market closed Thursday.

The Dow climbed 59 points to 12,632 as of 2:30 p.m. Eastern.

Moody's had been warning that it would make the move since early this year. Analysts said the round of downgrades removes one piece of uncertainty that had been weighing on banks.

"It's been like a cloud over the sector," said Brian Gendreau, market strategist with the broker Cetera Financial. "And look at who's going up: bank stocks. There are obviously some people who thought it would be much worse."

In a note to clients, analysts at the investment bank Keefe Bruyette & Woods called Morgan Stanley "the clear winner" and said JPMorgan took second place. They said some analysts had expected Moody's to lower Morgan Stanley's rating by three notches, instead of the two-notch cut it received.

Morgan Stanley rose 1 percent, gaining 14 cents to $14.11. JPMorgan Chase jumped 2 percent, adding 70 cents to $36.19. Bank of America edged a penny to $7.83.

The Standard & Poor's 500 index rose 7 points to 1,332 and the Nasdaq composite index climbed 22 points to 2,881. The gains turned the Nasdaq positive for the week.

Health care was the strongest industry group among the 10 tracked by the S&P 500 index, followed by information technology and banks. Only two sectors fell, industrial and consumer discretionary companies. The gains were small but widespread. Of the 30 stocks in the Dow, just five fell.

The Dow and S&P remain on track for their first week of losses since June 1. The biggest drop of the week came Thursday, when a trio of weak manufacturing reports stirred fears about the global economy. The stock market took its second-steepest fall this year. The worst was June 1, after a dismal U.S. jobs report rattled markets.

Even with those losses, the S&P 500 is still up 1.5 percent this month. To Gendreau, it looks like investors have been overreacting to recent economic reports.

"The market is getting jerked around," he said. "The economic data point to a softening economy, but we've had a softening economy for three years now."

Bank of America said in a statement on Friday that they did not anticipate the downgrade would impact how it works with its customers. The bank added that it has plenty of money on hand, so it does not need to borrow money.

Analysts said the credit downgrade will likely make it more expensive for these banks to borrow, making it more difficult for some people to borrow from them.

Andy Turner has been showing his home for about 60 days and is worried about how the downgrade could affect home loans.

"We had a lot of showings early on, but it's sort of slowed down here as summer's gotten here," he said. "I'm kind of concerned about what the banks are doing right now."    

Turner's realtor, Bob Bunzey of Wilkinson & Associates, said it's already been tough for some people who want to buy.

"It's been a struggle over the last few years with qualified clients and them being able to get the loans that they want and anything that constricts that is certainly going to make it tougher," he said.

UNC Charlotte finance professor Tony Plath said he does not expect interest rates at the 15 banks to go up, since not all banks are affected and it's a competitive market. Instead, he expects them to be choosier about who receives loans.

"We'll see credit terms tighten a little bit at some of the big banks because they want to make sure that all of their borrowers are profitable, performing borrowers," Plath said.

He said borrowers need to shop around.

Several of the banks have disagreed with the downgrade.

Officials from Bank of America said they don't believe loan terms will tighten or that this will affect how they serve their customers and clients.

“We’ve known this was coming. We didn’t know exactly when it would occur,” said Plath.

He added that the downgrade would still hurt the banks and paints a negative picture of the economy.

"At the end of the day, it prolongs our recovery and it maintains a slow rate of growth," he said.