Wall Street staged a comeback on Friday, led by a rebound in beaten-down financial and energy stocks after five straight days of a grueling rout on fears over the health of the global economy and the banking sector.
Nine of the 10 major S&P sectors were higher, led by a 2.4 percent rise in the financial sector. Six of the top ten gainers on the S&P 500 were from the financial sector, which is down 15 percent this year.
Banks stocks, which were the worst hit due to concerns about the impact of negative interest rates and a energy-backed loan defaults, were the top gainers, led by JPMorgan's 4.9 percent gain.
Energy and materials stocks, both of which have been hammered by plummeting commodities prices this year, were up about 1.8 percent.
U.S. crude oil prices soared 11 percent and Brent jumped 8.4 percent, bouncing back from 2003-lows, on prospects for a coordinated production cut.
Also helping boost sentiment was a report that showed U.S. consumer spending regained its mojo in January, in a hopeful sign that economic growth was picking up after slowing to a crawl at the end of 2015.
"This morning's action is being driven by all the big losses over the last few days reversing," said Bo Christiansen, chief analyst at Danske Invest in Copenhagen.
At 10:59 a.m. ET (1559 GMT), the Dow Jones industrial average was up 165.6 points, or 1.06 percent, at 15,825.78.
The S&P 500 was up 17.06 points, or 0.93 percent, at 1,846.14.
The Nasdaq Composite index was up 21.52 points, or 0.5 percent, at 4,288.36.
JPMorgan jumped 5.6 percent to $56.05 after CEO Jamie Dimon bought more than $25 million of the bank's stock.
Activision Blizzard dropped 10 percent to $27.41 after the videogame maker reported lower-than-expected quarterly revenue and profit.
Wynn Resorts rose 11.5 percent to $66.60 after the hotel and casino operator reported better-than-expected quarterly profit.
AIG jumped 5.8 percent to $53.49 after the largest commercial U.S. insurer struck a deal with activist investor Carl Icahn.
Advancing issues outnumbered decliners on the NYSE by 2,186 to 741. On the Nasdaq, 1,614 issues rose and 942 fell.
The S&P 500 index showed 4 new 52-week highs and 4 new lows, while the Nasdaq recorded 3 new highs and 85 new lows.
(Reporting by Aastha Agnihotri and Abhiram Nandakumar in Bengaluru; Editing by Savio D'Souza)
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Published Date: Feb 12, 2016 23:15 PM | Updated Date: Feb 12, 2016 23:15 PM