US stocks surge after Greenspan comments

The Dow Jones industrial average climbed 147.21, or 1.8%, to close at 8,512.01.

The broader market also finished higher. The Nasdaq composite index rose 9.62, or 0.7%, to 1,363.72. The Standard & Poor's 500 index gained 11.60, or 1.3%, to close at 895.85.

For the week, the Dow rose 0.9%, while the Nasdaq edged up 0.1% and the S&P 500 gained 0.7%.

Greenspan told the Economic Club of New York on Thursday that since the Fed's last rate cut on November 6, there was some evidence that the "US economy has been working its way through a soft patch". He added that the United States faces no immediate threat of deflation.