US stocks rose on Thursday as a brokerage's upbeat view on US banks drove a run-up in financials.
Soaring prices of oil and other commodities lifted natural resource companies on bets the economic slump is waning.
RBC Capital Markets upgraded the banking sector, saying it is poised for a multiyear bull market. The KBW bank index added 4.8%.
Crude oil prices surged and underpinned the broader market after Goldman Sachs raised its year-end oil price forecast to $US85 a barrel, saying economic stabilization and tight supplies should bode well for prices.
US crude settled up 4% at $US68.81 a barrel on the New York Mercantile Exchange.
The Dow Jones industrial average gained 74.96 points, or 0.86%, to 8,750.24.
The Standard & Poor's 500 Index climbed 10.70 points, or 1.15%, to 942.46.
The Nasdaq Composite Index rose 24.10 points, or 1.32%, to 1,850.02.