"The unifying factor of today's move and this whole week is a heightened confidence in the pace of economic activity".
The Dow Jones Industrial Average rose 228.46 points, or 0.89 per cent, to 25,803.19, the S&P 500 gained 18.68 points, or 0.67 per cent, to 2,786.24 and the Nasdaq Composite added 49.29 points, or 0.68 per cent, to 7,261.06.
Wall Street had dropped on Wednesday, the first daily decline for S&P and Nasdaq in 2018, after a report China would slow U.S. government bond purchases and a report that U.S. President Donald Trump would end a key trade agreement.
Major benchmarks closed at records Friday as stocks continued to ride a wave of optimism as fourth-quarter earnings season got underway. "The only threat to the stock market right now is high interest rates".
JPMorgan Chase rose 0.5 percent in choppy trading after the biggest USA bank by assets reported profit that beat estimates, benefiting from higher interest rates and loan growth.
The S&P consumer discretionary index jumped 0.55 percent after data showed households bought a range of goods and figures for the prior month were revised higher, suggesting the economy exited 2017 with strong momentum. It also reported an upbeat quarterly profit.
The Dow Jones Industrial Average climbed almost one percent, adding 205.6 to a close of 25,574.73.
NASDAQ measures a number of indices reflecting the reaction of USA's high tech markets and business environments on the country's political and economic developments which have an impact on high tech markets.
Advancing issues outnumbered decliners on the NYSE by 1,462 to 1,035.