Wall Street's main indices have closed with big gains, boosted by heavyweight tech and growth stocks as Treasury yields calmed, while investors looked ahead to a next week's reports on inflation and other economic data.
The tech-heavy Nasdaq Composite on Friday posted its biggest one-day percentage rise since May 26.
Equities bounced back from declines the previous session which followed hawkish comments from Federal Reserve Chair Jerome Powell about interest rates.
Thursday's drop ended the longest winning streaks in two years for the S&P 500 and the Nasdaq.
Investors have been focused on benchmark Treasury yields, which have eased somewhat from 16-year highs, and monetary policy as they assess whether the Fed might be done raising rates to control inflation and when the central bank could start cutting rates.
"We have had rates roll over here a little bit and I think that's one of the reasons we have seen this rally over the last couple of weeks," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.
"If you think this rally has legs, yesterday gave you an opportunity to go buy some stocks today."
Next week the consumer price index report will be closely watched, along with data on producer prices and retail sales, which will further shape interest rate projections.
"In general, the expectation investors have is that the upcoming inflation data is going to be positive for the market and I think they want to get in front of it a little bit," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
The Dow Jones Industrial Average rose 391.16 points, or 1.15 per cent, to 34,283.1, the S&P 500 gained 67.89 points, or 1.56 per cent, to 4,415.24 and the Nasdaq Composite gained 276.66 points, or 2.05 per cent, to 13,798.11.
The S&P 500 posted its highest closing level since September 19.
All 11 S&P 500 sectors ended in positive territory, led by a 2.6 per cent gain for the technology sector.
Megacap stocks that have propelled the market higher this year also rose solidly on Friday.
Nvidia rose about 3 per cent, with meta Platforms up 2.6 per cent and Microsoft up 2.5 per cent.
For the week, the Dow rose about 0.7 per cent, the S&P 500 gained 1.3 per cent and the Nasdaq climbed 2.4 per cent.
Helping support equities, the yield on the benchmark 10-year Treasury note was little changed at 4.62 per cent the day after a jump that was partly driven by a weaker-than-expected 30-year bond auction.
Data on Friday showed US consumer sentiment fell for a fourth straight month in November, and households' expectations for inflation rose again.
In company news, Illumina shares dropped eight per cent as the genetic testing company trimmed its full-year profit forecast for the second straight quarter.
