Stocks surged on Friday as the U.S.-led coalition delivered a devastating air assault on Baghdad, fueling investors’ hopes the war in Iraq would soon end.

Canadian investors also seemed unconcerned by February inflation figures which came in slightly higher than expectations. Rising energy prices got the blame for the increase.

Toronto stocks extended their winning streak to a seventh straight session. The S&P/TSX composite index gained 60.32 points to close at 6,535.90. For the week, the benchmark index rose 3.6%.

The TSX information technology sector finished the session up 1.8% and the telecoms sector added 1.9%.

ATI Technologies led the tech climb as its shares jumped $1.45 to $8.15. The graphics chips supplier reported a quarterly loss, but higher revenues.

Nortel Networks rose 5¢ to $3.33, while Research In Motion added 41¢ to close at $21.08.

Among the session’s losers, energy stocks slipped 0.6%. May crude oil futures in New York were quoted at US$26.91 a barrel, down US$1.21.

Gold lost more of its “war premium”, falling another US$6.90 an ounce to a three-month low of US$326.10. The TSX gold group slipped

Forzani Group shares fell 81¢ to $17.20. The sporting goods retailer reported higher sales and profits, but the results fell short of analysts’ expectations.

Air Canada shares gained 5¢ to $3.05 after the airline said it will slash 3,600 jobs and cut capacity.

TSX advances beat declines 581 to 481 with 225 issues unchanged. Volume was 246 million shares worth $3.9 billion.

The TSX Venture Exchange lost 4.60 points to 1,054.70.

The Dow Jones industrial average climbed 234.95 points, or 2.84%, to 8,521.55, just off its session high. The Dow rose for an eighth day, its longest streak of gains since December 1998.

The S&P 500 jumped 19.85 points, or 2.27%, to 895.70, its high for the day. The tech-heavy Nasdaq composite index advanced 18.40 points, or 1.31%, to 1,421.17, not far from its session high.

All three U.S. market gauges rose for the week, with the Dow average up 8.36%, its best weekly gain since October 1982.

The Canadian dollar slipped 0.59¢to close at US66.92¢. That’s the first time the loonie has fallen below the US67¢ since the end of February.