U.S. stocks finish higher, snapping three weeks of losses

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Dow ends up 800 points Friday as stocks notch strong weekly gains

U.S. stocks rallied into the close on Friday with all three benchmarks finishing near their highs of the session as falling commodity prices and intensifying recession fears caused inflation expectations to moderate, helping stocks to post their first weekly gain in three. The S&P 500 SPX, +3.06% gained 116.42 points, or 3%, to 3912.15. The Dow Jones Industrial Average DJIA, +2.68% closed 824.18 points, or 2.7%, higher at 31,501.50 . The Nasdaq Composite COMP, +3.

34% rose 375.43 points, or 3.3%, to 11,607.60. Fed Funds futures, used by investors to speculate on shifts in Fed monetary policy, are now pricing in a peak of 3.25% to 3.50% at year's end --- compared with a peak of 3.50% to 3.75% expected last week. The shift in inflation expectations also impacted bonds, with the two-year Treasury yield seeing its biggest weekly decline since March, while the 10-year and 30-year bonds clinched their biggest weekly pullbacks since May.

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