U.S. stocks climbed on Friday, paring the severity of weekly declines, as bargain hunters stepped in after two days of losses, helping foster hope that global intervention will help an economy that shed nearly a quarter million jobs in October.

For the week, U.S. stocks fell about 4%, after several days of ripping volatility. They are now 40% from their highs of October, 2007. The Dow ended the week at 8,943, down 381 points, the S&P 500 closed at 930, off 38 points and the Nasdaq finished at 1,647.4, off 4.3% from last Friday’s close.

European and U.S. stock-index futures climbed and Asian shares rose today after China unveiled a $586 billion plan to stimulate the world’s biggest contributor to economic growth. Oil and copper rallied, while the yen fell.

China, the world’s fourth-largest economy, has joined governments and central banks from Washington and Tokyo to Frankfurt and London by lowering borrowing costs and injecting cash to avert recession and unlock credit markets.

The G20 said yesterday that it is prepared to act urgently to bolster growth and called on governments to cut interest rates and raise spending as the world’s leading industrialized economies battle the economic slump.

Investors will focus on the meeting in Washington this weekend. But as far the new Administration, investors do not expect much action ahead of January. President-elect Barack Obama spoke on Friday, saying he would not get in the way of the current Administration.

The same trend is likely to be the same for this week, and the stock market should stay volatile as it reacts to economic news. The economic calendar though is fairly light, but there are earnings reports from major retailers. Those numbers should only confirm that the holiday shopping season is shaping up to be one of the weakest in years.

Many economists have been expecting the current quarter to show this recession’s biggest decline in GDP.

“All human situations have their inconveniences. We feel those of the present but neither see nor feel those of the future; and hence we often make troublesome changes without amendment, and frequently for the worse” - Benjamin Franklin

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