Stocks rallied to the finish line Friday as tech stocks surged after some encouraging comments from Intel's CEO.
Investors breathed a sigh of a relief after the August jobs report, which showed the unemployment rate hit a 26-year highbut layoffs seemed to be tapering off, and there was some short covering ahead of the long weekend.
The Dow Jones Industrial Average rose 96.66, or 1 percent, to close at 9,441.27. The S&P 500 jumped 1.3 percent and the Nasdaq soared 1.8 percent as tech stocks rallied.
But it wasn't enough to claw back all of the week's losses: The Dow ended the week down 1 percent, the S&P lost 1.2 percent and the Nasdaq dropped 0.5 percent, snapping a two-week winning streak.
U.S. financial markets will be closed Monday for the Labor Day holiday.
It was all about financials this week, with heavy trading in Bank of America , Citigroup , Fannie Mae and Freddie Mac and AIG but today's big story was tech.
Tech stocks advanced after Intel's CEO said aging personal computers and Windows 7 will prompt companies to start spending on PCs again next year. The remarks underscored the wider belief that corporate IT spending will pick up next year.
Novellus gained nearly 3 percent after the chip-equipment maker raised its forecast.
And shares of memory-chip developer Rambus shot up 11 percent to $17.75 a share amid rumors that rival Samsung Electronics may offer to buy the company for between $25 and $27.50 a share.