What a Week: Ho Ho Whoa! An End to the Week Is the Best Gift for This Market

SAN FRANCISCO -- The ghost of Santa Claus rallies past emerged Friday, ending a week in which a far less welcome specter appeared as well.

The Dow Jones Industrial Average rose 1.4% Friday, while the S&P 500 gained 2.4%, and the Nasdaq Composite jumped 7.6%, its fifth-best percentage gain ever. The advance was fueled by rising expectations that the Federal Reserve will ease interest rates prior to its Jan. 30-31 meeting and a sense that harsh selling, culminating Tuesday and Wednesday, had created irresistible bargains.

The Dow continued to outperform this week, rising 1.9%, while the S&P slid 0.5% and the Comp shed 5.1%. ...