US Stocks: Best week of 2012 (ext.CNN)

NEW YORK (CNNMoney) -- U.S. stocks rose Friday, capping the best week of the year, amid speculation that Spain will request a bailout for its troubled banking sector over the weekend.

The Dow Jones industrial average (INDU) rose 93 points, or 0.7%, to end at 12,554. The S&P 500 (SPX) gained 11 points, or 0.8%, to 1,326. The Nasdaq (COMP) was up by 27 points, or 1%, to 2,858.

The major gauges all posted the largest weekly gain of 2012. The Dow rose 3.6%, the S&P gained 3.5% and the Nasdaq was 3.9% higher for the week.

Overall, the gains were driven by hopes for a coordinated intervention by global central banks to support the economy. On Thursday, China's central bank announced a surprise interest rate cut. The European Central Bank held rates steady at its meeting Wednesday, but many analysts expect the ECB to cut rates next month.

Federal Reserve chairman Ben Bernanke told lawmakers Wednesday that the U.S. central bank stands ready to act, but he offered no hint that additional stimulus measures are imminent. Bernanke's comments came after other Fed officials suggested the bank could extend a policy of reinvesting proceeds from assets on its balance sheet into the Treasury market, known as Operation Twist.

"There's a lot of uncertainty out there," said Bernard Kavanagh, vice president of portfolio management for St. Louis-based broker Stifel Nicolaus. "I'm surprised we didn't see more selling given the strong week we've had."

Meanwhile, investors remain focused on Europe, particularly the banking crisis in Spain.

Spain could formally request bailout funds from the European Union as soon as this weekend, according to Reuters. But EU officials and the Spanish government say a request for help will not be made until a full assessment of the banking sector is complete.

The dollar gained against the euro and the British pound, but slipped versus the Japanese yen.

Oil for July delivery continue its slide, losing 72 cents to settle at $84.10 a barrel.

Gold futures for June delivery rose $3.40 to end at $1,591.40 an ounce, reversing earlier losses.