U.S. stocks surged on Friday as investors bet on further stimulus from central banks and corporations including General Electric and Morgan Stanley reporting profits that topped expectations.
Morgan Stanley gained in early New York trading after the investment bank tallied third-quarter earnings that beat estimates. General Electric climbed after its quarterly profit exceeded expectations.
The CBOE Volatility Index, a measure of investor uncertainty, dropped 16 percent to 21.05.
The Commerce Department on Friday reported new-home construction climbed 6.3 percent in August, signaling improvement in the U.S. residential real-estate market.
The preliminary read for consumer sentiment in October came in at 86.4 versus a 84.0 estimate.
On Thursday, St. Louis Federal Reserve Bank President James Bullard said the central bank should think about postponing the end of its bond purchases.
At or near session highs, the Dow Jones Industrial Average was lately up 174 points, or 1.1 percent, at 16,291.24, with GE leading blue-chip gains that extended to 28 of 30 components.
The S&P 500 added 20.02 points, or 1.1 percent, to 1,882.78, with energy the best performing of its 10 major industry groups.
The Nasdaq climbed 45.77 points, or 1.1 percent, to 4,263.16.
For every share falling, roughly four gained on the New York Stock Exchange, where 174 million shares traded as of 9:50 a.m. Eastern. Composite volume hit 468 million.
On Thursday, U.S. stocks ended little changed, with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected U.S. earnings and economic reports.