Stocks closed the week lower as credit market concerns had investors running for safety but a reversal of misfortune late in the week cut losses significantly.
Buying opportunists snapped up cheap financial stocks on Thursday while the Federal Reserve strengthened that resolve by cutting the discount rate on Friday.
The Dow Jones Industrial Average posted a weekly loss of 1.2%, after a two-day stay below the 13,000 level, the S&P 500 ended down 0.5% and the Nasdaq Composite fell 1.6%.
For the year, the benchmark S&P 500 clung to gains of 1.9% after dropping into negative territory earlier in the week. The Dow remains up 4.9% in 2007 while the Nasdaq has gained 3.7%.