Stocks snapped a three-day losing streak on Friday as investors bought beaten-down bank shares on bets a financial reform bill won't be as onerous as some had feared.

The KBW bank index <.BKX> shot up 4 percent.

The Dow Jones industrial average <.DJI> added 125.38 points, or 1.25 percent, to 10,193.39, according to the latest available figures. The Standard & Poor's 500 Index <.SPX> rose 16.10 points, or 1.50 percent, to 1,087.69. The Nasdaq Composite Index <.IXIC> gained 25.03 points, or 1.14 percent, to 2,229.04.

For the week, though, indexes posted losses of 4 percent to 5 percent.

(Editing by Kenneth Barry)