NEW YORK ( TheStreet) -- Stocks finished near session highs Friday as investors felt encouraged by global growth prospects and looked ahead to the start of earnings season next week. The major U.S. indices finished the week with 5% gains, marking the best weekly performance in a year for the Dow and the S&P 500. The Dow Jones Industrial Average added more than 500 points during the week, for gains of 5.3%. On Friday, it rose by 59 points, or 0.6%, to close at 10,198. The S&P 500 gained 8 points, or 0.7%, to close at 1078, finishing the week 5.4% higher. The Nasdaq was ahead by 21 points, or 1%, at 2197, marking a 5% gain for the week. Earlier, Jay Suskind, senior vice president at Duncan Williams said, "Today certainly feels like a lazy Friday in July, especially after two to three weeks of volatile trading. I think you'll see muted trading today with an upside bias." "Up until this week, you just couldn't find any positive news -- everything was very negative and focuses on whether there would be a double dip. Then this week, you get State Street ( STT) expecting stronger earnings and the IMF saying growth might come quicker than initially forecast, and now we're going into earnings season." Suskind expects sideways trading into earnings season, but said the market could remain mildly on the upside if corporate outlooks confirm future earnings growth, easing fears of a double dip. "The overall market is so psychological -- and it's nervous either way -- it tends to oversell and overbuy. We just had overselling and now we're trying to establish some normalcy," he said. The Bank of Korea increased its benchmark interest rate from record lows, following similar moves in recent weeks by Taiwan, India and Malaysia. Investors took the move as a sign the central bank was expecting faster global growth. Hong Kong's Hang Seng rose 1.6% and Japan's Nikkei added 0.5%. The FTSE in London inched 0.5% higher, and the DAX in Frankfurt also added 0.5%.