Stocks Vaulted Higher by Afternoon Rally

Updated from 1:03 p.m. EST

As is perfectly normal these days on Wall Street, stocks traded in a wide band before surging ahead late in the session Friday, a rally that coincided with reports that New York Federal Reserve leader Tim Geithner is likely to be nominated as the next secretary of the Treasury.

During the final hour of trading, the Dow Jones Industrial Average skyrocketed to close up 494.13 points, or 6.5%, at 8046.42. The S&P 500 added 47.59 points, or 6.3%, to 800.03, and the Nasdaq gained 68.23 points, or 5.2%, at 1384.35.

As the markets continued to process the likelihood of a severe economic downturn, NBC News reported that President-elect Barack Obama will on Monday name Geithner as his choice to run the Treasury Department. ...