Stocks added to strong gains, buoyed by news of surprisingly strong job gains in April.
The Dow Jones Industrial Average rose more than 150 points, reversing Thursday's price action, when the blue-chip index sank about 139 pointsamid a broad sell-off in commodities.
Kraft was among Dow stocks that led the average higher thanks to stronger-than-expected earnings results delivered after the market closed on Thursday, and price target upgrades by several brokerages.
The upbeat tone to the markets comes on the anniversary of the "Flash Crash," when the Dow plunged nearly 1,000 points in minutes.
TheS&P 500 and the Nasdaq also gained 1 percent. The CBOE Volatility Index, widely considered the best gauge of fear in the market, sank below 17.
All key S&P 500 sectors gained, led by energy and materials.
A 244,000 jump in nonfarm payrolls for April is great news for stocks, says Todd Schoenberger, managing director at LandColt Trading. The best part of the report was that private payrolls gained 268,000 in April, up from 231,000 in March, Schoenberger said.
"It's obvious these jobs are sticky, and not of the temporary, part-time variety," Schoenberger said.
The news is good for stocks because with monetary stimulus by the Federal Reserve ending in June, "you need to have earnings growth," he said. "And we’re seeing that. Now we have jobs growth."
The April report also counters dismal economic news released earlier in the week, including a weak report on service sector growth, as well as a big jump in initial claims for unemployment benefits. Although same store sales datafrom retailers showed relative strength on Thursday.
The markets also sank along with commodity prices earlier in the week, as the dollar gained. On Friday, those trends modestly reversed as the dollar traded flat against a basket of currencies.
Most commodity prices stabilized, including oil. U.S. light crude rose to nearly $102 a barrel after closing lower than $100 on Thursday, while buyers also returnedto silver and gold futures.
Earlier, European Central Bank President Jean-Claude Trichet said on CNBC that the commodity selloff would help to calm inflation, which he said was good news.