What happens next Where's my refund? Best CD rates this month Shop and save 🤑
MONEY
S&P 500

Stocks rally: S&P 500 posts best weekly gain of 2014

Kim Hjelmgaard
USA TODAY

The stock market closed out its best week of the year on Friday, as good news on the economy and corporate earnings overshadowed worries about the latest confirmed case of Ebola.

A trader works on the floor of the New York Stock Exchange.

The Standard & Poor's 500 index finished up 13.76 points, 0.7%, to 1964.58, capping off a strong week that saw the benchmark index rise 4.1%. The strong gains helped the S&P 500 snap a four-week losing streak.

The Dow Jones industrial average ended up 127.51 points, 0.8%, to 16,805.41, and posted a 2.6% gain for week. The tech-heavy Nasdaq composite closed up 30.92 points, 0.7%, to 4483.72 and surged 5.3% for the week.

Sales of new homes were essentially flat in September, after the government sharply revised downward what was initially an August surge in buying.

The gains followed an explosive rally on Thursday, when better-than-expected earnings from automaker General Motors and heavy equipment maker Caterpillar sent stocks surging.

The Dow came close to having its best day of 2014 on Thursday, but news about a New York City doctor being rushed to a hospital on Ebola fears trimmed a 300-point gain to 217 points by the end of trading.

After the bell, it was confirmed the doctor, Craig Spencer, has tested positive for Ebola.

Wall Street is closing out a tumultuous period that at one point last week looked as if the stock market was in serious danger of suffering its first correction -- a 10% pullback -- in more than three years.

The S&P 500 index briefly fell into losing territory for the year on the sell-off's worst day, Sept. 16, and one of the things scaring investors that day was the possibility of an Ebola outbreak here in the U.S.

The fact there is a confirmed case in New York City had no apparent effect on the stock market Friday showed just how much confidence has shifted in the past week. Following this week's rally, the S&P 500 is now back up to a 6.3% gain for 2014 and just 2.3% below its all-time record close.

In corporate news Friday, Dow component Procter & Gamble announced it will separate Duracell as a standalone company. PG shares are up 2.5%.

Overseas markets were mixed as traders also monitored the news out of New York.

"The level of attention traders pay to Ebola could increase from here," said Chris Weston, chief market strategist at IG in Melbourne, Australia.

Europe stocks took a hit. The DAX of Germany closed 0.7% lower.

Asia markets moved in different directions. Japan's Nikkei 225 index added 1%, but China's Shanghai composite index was flat.

Contributing: The Associated Press.

Featured Weekly Ad