Stocks ended higher at the end of a volatile on Friday as traders assessed new developments in the ongoing banking sector turmoil, capping off a bumpy week following the Federal Reserve's latest monetary policy decision. The Dow Jones Industrial Average rose over 100 points, while the S&P 500 Index and Nasdaq Composite added about 0.6% and 0.3%, respectively.

Here's how the market settled to close out the week:

S&P 500 Index (SPY  ): +0.56% or +22.27 points to 3,970.99

Dow Jones Industrial Average (DIA  ): +0.41% or +132.28 points to 32,237.53

Nasdaq Composite Index (QQQ  ): +0.31% or +36.56 points to 11,823.96

All three of the major averages also had a winning week, with the Dow adding 0.4%, while the S&P 500 and Nasdaq climbed 1.4% and 1.6% higher, respectively.

In the spotlight Friday, Deutsche Bank (DB  ) fell as low as 11% following a spike in credit default swaps late Thursday. The swaps, which are a form of insurance for a company's bondholders against its default, rose to 173 basis points Thursday night from 142 basis points the previous day.

That increase triggered more concerns over the health of the European banking industry, which has been monitored since the forced marriage of UBS (UBS  ) and Credit Suisse by Swiss regulators after the latter came under liquidity trouble.

Those concerns led to more pressure on the U.S. banking sector as well, with shares of big banks JPMorgan Chase (JPM  ), Bank of America (BAC  ), Citigroup (C  ) and Wells Fargo (WFC  ) all lower on Friday.

Still driving market moves, traders are weighing the implications of the Fed's latest 25 basis point rate hike on Wednesday, which brings the Fed funds rate to its highest range since October 2007 between 4.75% to 5%. Market participants were also encouraged as the central bank signaled that its aggressive hiking campaign may be winding down in the near future.

"The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time," policymakers said in a statement on Wednesday, changing the language on interest rates to no longer include "ongoing rate increases."

Meanwhile, Fed Chair Jerome Powell noted that credit conditions have tightened in the aftermath of Silicon Valley Bank's collapse and the ongoing turmoil in the broader banking sector, which also could put pressure on the economy like interest rate hikes do.

Elsewhere, Block (SQ  ) shares continued to slide on Friday after falling 15% in the previous session following the release of Hindenburg Research's report on the payments provider, revealing their short position.

Hindenburg notably claimed that Block facilitants fraud through its Cash App mobile payments platform. In response, Block said it intends to "explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today."

In economic news, demand for long-lasting goods like appliances and other electronics fell by a more-than-expected rate in February, the Commerce Department reported Friday. Orders for durable good declined 1% month-to-month, but below January's monthly slide of 5%.

Looking ahead, market participants will continue to monitor any developments in the banking sector. On Friday, credit ratings firm Moody's warned that the rising problems in the banking industry could spread through the broader economy.

"In an uncertain economic environment and with investor confidence remaining fragile, there is a risk that policymakers will be unable to curtail the current turmoil without longer-lasting and potentially severe repercussions within and beyond the banking sector," Atsi Sheth, managing director of credit strategy at Moody's, and other others said in a report.

Treasury Secretary Janet Yellen said on Thursday regulators are prepared to take more actions if needed to stabilize U.S. banks. Her comments come as regulators attempt to instill confidence in U.S. banking after the collapse of two banks in the span of a few days.