Updated from 4:43 p.m. EDT

Stocks in New York closed 1% to 2% higher, although off their best levels of the session Friday, after the U.S. government released the parameters for the so-called stress tests being conducted on the nation's large banks.

The Dow Jones Industrial Average rose 119.23 points, or 1.5%, to 8076.29, while the S&P 500 climbed 14.31 points, or 1.7%, to 866.23. The Nasdaq gained 42.08 points, or 2.6%, to 1694.29.

For the week, the Dow lost 0.7%, and the S&P 500 fell 0.4%. That meant an end to six-week winning streaks for both. The Nasdaq, however, advanced 1.3%.

In a 21-page report, the Federal Reserve shared the process used for the Supervisory Capital Assessment Program, or stress test.

Meant to determine the capital adequacy of the 19 biggest financial institutions, the report reiterated earlier comments from Treasury Secretary Tim Geithner that most U.S. banks already have capital levels "well in excess of the amounts required to be well capitalized."

However, some banks may need to raise new funds as reserves have been hit by the economic and market downturn. Specifics weren't disclosed this time, though more details from the tests are expected in early May.

For his part, Geithner has taken a more positive tone recently as the rate of deterioration of some aspects of the economy has slowed.

"In recent weeks, there have been some encouraging signs that the global economic downturn may be slackening," he wrote in a column in the Financial Times ahead of a meeting with officials from other nations. "Conditions in some financial markets have improved and the decline in world trade may be abating. However, real progress requires time, and significant risks and challenges remain."

Financials were volatile, but generally rose. At the end of the day, Bank of America ( BAC) gained 3.2%, JPMorgan Chase ( JPM) added 0.5%, and Citigroup ( C) lost about 0.3% on the Dow .

If you liked this article you might like

Your Complete Guide to Living Like Billionaire Warren Buffett

How to Get Rich Using Warren Buffett's Favorite Stock Market Indicators

How to Make Your Life Successful Just Like Billionaire Warren Buffett

How to Live Just Like Billionaire Warren Buffett

How to Make a Deal Like Billionaire Investor Warren Buffett