Wall Street closed solidly in the black Friday as investors showed a bit more confidence ahead of a weekend that could see a rescue emerge for Spain and its ailing banks.
Stocks opened lower but heading upward on renewed hopes for progress in the eurozone debt risis, fueled by rumors of an impending bailout of troubled Spain, the euozone's fourth-largest economy.
"It may not feel like it, in the wake of last week's disappointing jobs report and the subsequent market plunge, but the major averages posted their best week of 2012, ending with another up day," Charles Schwab.
The Dow Jones Industrial Average added 93.24 points, or 0.75 percent, to close at 12,554.20.
The broad-market S&P 500 rose 10.67 (0.81 percent) to 1,325.66, while the tech-rich Nasdaq Composite gained 27.40 (0.97 percent) to 2,858.42.
"A report that Spain will request aid from European leaders in a conference call set for tomorrow boosted optimism that the beleaguered nation is trying to get its house in order," the Schwab analysts said.
President Barack Obama, in a White House news conference, underlined an urgent need to inject capital into ailing eurozone banks, saying that Europe's leaders "understand the urgent need to act."
"The decisions required are tough but Europe has the capacity to make them. And they have America's support," Obama said.
On the Dow, the world's top retailer Wal-Mart led the gainers, jumping 3.6 percent, followed by Wall Street bank JPMorgan Chase, up 2.7 percent.
Chesapeake Energy surged 2.9 percent after the gas giant announced plans to sell its pipeline and related assets in an almost $4 billion deal.
Fast-food chain McDonald's lost 0.7 percent after May sales numbers missed expectations.
Kraft Foods rose 0.2 percent. The packaged food company announced it was transferring its listing from the New York Stock Exchange to the Nasdaq this month, to cut costs.
NYSE Euronext fell 0.7 percent and Nasdaq OMX inched up barely 0.1 percent.
Facebook powered up 3.0 percent to $27.10, still 29 percent below its IPO price three weeks ago.
The top social network began rolling out Thursday an App Center for mini-programs aimed at boosting apps on mobile gadgets.
On Thursday, US stocks closed mixed after China lowered interest rates to spur its slowing economy and Federal Reserve Chairman Ben Bernanke, in testimony to Congress, did not signal a need for more stimulus.
Bonds were mixed. The yield on the 10-year Treasury bond edged down to 1.64 percent from 1.65 percent Thursday, while the 30-year option rose to 2.77 percent from 2.76 percent.
Bond prices and yields move in opposite directions.