Stocks gained Friday, paring earlier losses, after news that Egyptian President Hosni Mubarak waived his rights to presidency in response to demonstrations against his rule.
The Dow Jones Industrial Average gained almost 20 points, led by JPMorgan , Caterpillar and Bank of America , after snapping an eight-day winning streakin the previous session. But the index is still on pace for its 10th weekly gain in 11 weeks.
Kraft, Pfizer and Home Depot slipped on the blue-chip index.
The S&P 500 and the Nasdaq rose to trade in the positive territory. The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose above 16.
All 10 of the key S&P 500 sectors turned positive, led by financials, industrials and telecom.
In Egypt, President Hosni Mubarak resigned and handed over control of the country to the military, ending 30-years of rule, announced Vice President Omar Suleiman.
The president "has decided to give up his position as president of the republic," Suleiman said on national TV and added that the president had charged the higher military council to run affairs in the "tough circumstances that the country is passing through."
After refusing to step downuntil the September elections, Mubarak finally bowed to a historic 18-day wave of pro-democracy demonstrations by hundreds of thousands.
The Market Vectors Egyptian ETF jumped more than 7 percent following the news of Mubarak's resignation. Over 900,000 shares have already changed hands today, significantly more than its 10-day average of 614,000 shares.
On Thursday, Mubarak said he will stay in office until the September elections, rebuffing demands that he step down immediately, but will transfer power to the country's newly-appointed vice president.