It was the fourth straight increase for the Dow Jones industrial average. Industrial and energy companies had some of the biggest gains. Boeing climbed 2 percent.
KFC owner Yum Brands plunged 19 percent after the company cut its profit forecast for the year, citing weakness in its China operations. The company also owns Pizza Hut and Taco Bell.
The Dow Jones industrial average climbed 122 points, or 0.7 percent, to 16,912.
The Standard & Poor's 500 index gained 15 points, or 0.8 percent, to 1,995. The Nasdaq composite increased 42 points, or 0.9 percent, to 4,791.
The price of oil gave up an early advance and closed lower after the Energy Department said inventories of crude increased last week.