US stocks rallied on Friday on bets that grim jobs data will spur Washington to deliver a stimulus plan seen as key to bolstering a struggling economy. Sentiment was also boosted by anticipation of a bank bailout plan expected on Monday, sending bank shares sharply higher. J.P. Morgan was among the Dow's biggest lifts, up 10 percent at $26.99, while the S&P financial index jumped 7 percent.
"Sentiment in the financial sector is very, very important and we're all anticipating Monday," said Paul Nolte, director of investments at Hinsdale Associates, in Hinsdale, Illinois. The Dow Jones industrial average rose 227.71 points, or 2.82 percent, to 8,290.78. The Standard & Poor's 500 Index gained 23.94 points, or 2.83 percent, to 869.79.
The Nasdaq Composite Index jumped 46.81 points, or 3.03 percent, at 1,593.05. The Nasdaq recovered losses seen so far this year to be about 1 percent year-to-date, boosted by big-cap technology companies including Apple, up 3.4 percent at $99.70. The broad S&P 500 remains down more than 3 percent, while the Dow is off more than 5 percent for the year so far.