NEW YORK — U.S. stocks rallied Friday to lock in solid weekly gains, with the Dow Jones industrial average ending above the 9,000 mark for the first time since Nov. 5 as investors shelved one of the most bruising years on record to ponder moves by the new administration.
“Expectations for another big stimulus package once Barack Obama is sworn into the presidency in about three weeks’ time is helping lift stocks,” said analysts at Action Economics.
Up for a third consecutive session, the Dow Jones industrial average climbed 258.3 points, or 2.9 percent, to end at 9,034.69, leaving the blue-chip index up more than 500 points, or 6.1 percent, for the week.
“Looking at the fundamentals of the economy, making judgments about the future and not simply extrapolating the past, I think ’09 will be a lot better,” said Chuck Lieberman, chief investment officer of Advisors Capital Management.
All of the Dow’s 30 components closed Friday in the green. Shares of General Motors Corp. jumped 14.1 percent on word that lender GMAC LLC had changed its financial-services pact with the struggling auto giant to give it more flexibility in offering loans.
Also bolstering the Dow, shares of Citigroup Inc. gained 6.4 percent after chief executive Vikram Pandit said in a Wednesday memo that he and chairman Win Bischoff would not take bonuses for 2008 and will trim pay and severance packages for executives.
The S&P 500 climbed 28.55 points, or 3.2 percent, to 931.80, leaving the broad-market index with a weekly gain of 6.8 percent.
Energy and consumer discretionary shares fronted gains that stretched to include all 10 of the index’s industry groups.
Noteworthy gains came from Massey Energy Co., which rose 17.4 percent, and Consol Energy Inc., up 12.5 percent.
The technology-led Nasdaq Composite rose 55.18 points, or 3.5 percent, to finish at 1,632.21, 6.7 percent ahead of the previous Friday’s close.
Data from the Semiconductor Industry Association showed worldwide semiconductor sales fell 9.8 percent to $20.8 billion in November, with the SIA pointing to the global economic decline for reduced demand.
Volume was thin, with many investors apparently still on break. On the New York Stock Exchange, about 1 billion shares traded, with more than five stocks rising for every issue on the decline. On the Nasdaq, 543 million shares traded hands.
“For all practical purposes, the real start of the trading year won’t take place until next week,” said Kevin Giddis, managing director and head of fixed income at Morgan Keegan & Co. Inc.
Crude-oil futures rose to three-week highs, gaining nearly 4 percent on concerns that Russia’s cutting off natural gas to the Ukraine could impact European energy supplies. Crude for February delivery ended up $1.74, or 3.9 percent, to stand at $46.34 a barrel on the New York Mercantile Exchange.
