"The day-to-day relationships (with oil, etc.) are mixed up. We're just continuing to ride the idea that Janet Yellen is never going to raise rates and even if she does it's going to be so slow that we're not going to notice," Boockvar said.
The U.S. 10- year Treasury yield held steady near 1.94 percent. The U.S. 2-year Treasury yield edged lower to 0.58 percent.
The Federal Reserve removed "patient" from its statement on Wednesday but lowered its interest rate outlook and economic forecasts.
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Atlanta Federal Reserve President Dennis Lockhart said on Friday he sees an interest rate "lift-off" by September, Reuters reported.
He expects the U.S.central bank to raise interest rates at either its June, July or September policy meetings, barring a significant downturn in the U.S. economy.
The lower economic forecasts issued by the Fed earlier this week reflect mostly ``transient'' changes that do not fundamentally change its outlook for continued U.S. growth, Lockhart told reporters after a speech at a University of Georgia Law School symposium.
Boockvar said Lockhart has spoken about a June or September rate hike in the past and that the Friday remarks were "nothing new."
Chicago Federal Reserve Bank Charles Evans said in a speech Friday that delaying liftoff wouldn't spark inflation.
No major economic reports were due.
"Investors are really trying to balance the pace of economic growth, slower than consensus (earnings growth) in the first quarter, lower energy prices and a pretty confident consumer," said Art Hogan, chief market strategist at Wunderlich Securities.
Hogan pointed out that the S&P 500 and Dow Jones industrial average have not had two days of consecutive gains or losses since the middle of February. Friday marks the eighth consecutive trading session in which the two indices have alternated between daily gains and losses, with the Dow moving triple-digits each day.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 13.
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Analysts attributed the expiration of options to the surge in trade volume.
Four shares advanced for every decliner on the New York Stock Exchange, with an exchange volume of 2.1 billion and a composite volume of 5.1 billion.
High-frequency trading accounted for 47.5 percent of March to date's daily trading volume of about 6.6 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.
European equities closed higher on Friday, with the FTSE 100 above 7,000 for the first time, boosted by strong performance from British energy and basic resources stocks.
Developments in the Greece debt talks also encouraged investors.
Earlier in the day, German Chancellor Angela Merkel said that Greece would present a list of reforms over the next several days. The European Union held the second day of its summit in Brussels.
"It's a little bit of optimism around Greece. It looks like the talks might have gone slightly better. I remain very, very cautious. The market is somewhat illiquid. It's been a very big week," said UBS managing director and FX expert Paul Richards. "… We had a very big move with the Fed."
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Simon Property made its "best and final offer" to acquire all outstanding shares of operator Macerich for $95.50 a share in cash and Simon shares, an approximate value of $23.2 billion, including assumption of about $6.4 billion of outstanding Macerich debt, a Simon press release said. Earlier this week, the smaller mall property operator rejected Simon's initial $14.39 billion unsolicited offer.
Amazon received approval from the Federal Aviation Administration to test drones in Washington State. The firm could see some headway on the "Prime Air" service it would like to offer.
In other news, Bank of New York Mellon agreed on Thursday to pay $714 million to settle allegations of fraudulent foreign exchange practices.
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Nike topped Wall Street's earnings estimates on Thursday after the bell, but sales figures came in below expectations as it struggled with the negative impacts of a stronger dollar
Tiffany reported results before the opening bell, that showed 1 percent drop in quarterly sales, hurt by a stronger dollar and weak demand during the holiday shopping season.
Darden Restaurants reported same store sales rose 3.6 percent in the most recent quarter, and boosted its outlook for the full year.