Nasdaq gains 1.1%: Stocks end up

— -- The stock market ended up Friday after bouncing between gains and losses in trading that was relatively quiet at the end of a brutal week.

The Nasdaq composite index closed up 1.1%, gaining 27.6 points to settle at 2,483.23. The Dow Jones industrial average ended up 0.4%, rising 38 points to 10,771.48, and the S&P 500 gained 0.6%.

Stocks had opened slightly lower and then fluctuated throughout the day.

There was little news to influence traders, a big change from the stream of bad news that sent stocks plunging Wednesday and Thursday. Investors were watching the meetings of finance ministers in Washington. They were attending the annual meeting of the International Monetary Fund, and Europe's debt crisis was the most critical topic on their agenda.

Fears about Europe's debt were stoked early Friday by news that Moody's Investors Service had downgraded its ratings of eight Greek banks by two notches. The rating agency said the banks hold too much Greek debt. If Greece's government defaults on its debt, the banks would suffer heavy losses. Investors fear that if banks across the region lose money on Greek debt, that could lead to a recession in the region that would also hurt the U.S. economy.

Finance ministers from 20 large nations pledged late Thursday to take "all necessary actions to preserve the stability of the banking systems and financial markets" and make sure banks have the cash they need to stay afloat. The announcement offered no new specifics, and did little to stop selling in overseas markets. But European markets started rising shortly before U.S. markets opened. They closed with small gains.

Europe's problems helped feed the heavy selling this week that sent the Dow down 6.6%. Investors are also worried that the U.S. is headed for another recession. And U.S. political leaders are in another standoff over spending that could force the government to shut down.

John Merrill, chief investment officer at Tanglewood Wealth Management in Houston, said Friday's respite might not last.

"Nothing goes in a straight line, even markets that are declining steeply," he said. Merrill said the market was moderating as traders bought shares that looked like bargains after the week's selling. But the problems that have weighed on markets for months now show no sign of letting up.

It's common after a big plunge for volatility to ease as investors start buying stocks that look cheap. Bargain-hunters "bring some stability into the market for a day or two, until they've used up their buying power," Merrill said. "Then the macro issues surface again" and volatility returns.

Treasury yields rose slightly from record lows reached Thursday as the quieter stock market reduced traders' hunger for lower-risk bets such as Treasurys. The yield on the benchmark 10-year Treasury note rose to 1.80% from 1.73% late Thursday. Demand for Treasurys drives their prices higher and their yields lower.

The Dow has had its worst weekly showing since the week ended Oct. 3, 2008. That's the week Congress struggled to pass the $700 billion bank bailout known as the Troubled Asset Relief Program, or TARP.

Some companies that produce commodities fell Friday after investments like silver, copper, oil plunged this week. Range Resources declined 9.9%. Newmont Mining fell 3.6%. Cabot Oil & Gas lost 5.4%.

The sell-off in commodities continued Friday. Crude oil fell 0.8%, gold dropped 4.6% and silver fell 11.5%.

Traders had sold precious metals to raise cash during Thursday's sell-off and dumped other investments that lose value when the economy weakens, such as oil and raw materials.

Thursday's stock plunge, which took the Dow down 391 points, marked the second day of steep losses after the Federal Reserve announced a new effort to boost the economy by buying long-term Treasurys. By creating extra demand for the investments, the Fed hopes to drive their yields lower. Many interest rates are based on the yield for the 10-year Treasury note. Lower interest rates might spur investment and increase lending.