U.S. stocks increased on Friday, with the S&P 500 rebounding after its largest drop in three months, as investors drew cheer from the latest round of corporate earnings and found solace in the view that geopolitical tensions appeared contained.
Portfolio manager of Federated Investors Matthew Kaufler said that “As tragic as it is, it is probably not something that is going to proliferate”, of the airliner crash that came a day after the United States and the European Union strengthened sanctions on Russia.
The gains helped wipe out much of the stock market’s losses from the day before, when the downing of a passenger jet over eastern Ukraine and Israel’s launch of a ground offensive into Gaza rattled markets.
The Dow Jones industrial average increase 123.37 points, or 0.7 percent, to close at 17,100.18.
The Standard & Poor’s 500 index gained 20.10 points, or 1 percent, to 1,978.22.
The Nasdaq composite index climbed 68.70 points, or 1.6 percent, to 4,432.15.
European shares were little changed, with the Stoxx Europe 600 down less than 0.1 per cent.
In commodity markets, gold futures fell 0.5 per cent to 1,310.30 dollars an ounce, while crude-oil futures fell 0.1 per cent to 103.05 dollars a barrel.