Stocks maintained highs in a rally on Friday afternoon as crude oil spiked and banks recovered after steep declines a day earlier.
The S&P 500 was up 1.5%, the Dow Jones Industrial Average gained 1.3%, and the Nasdaq climbed 1.3%.
Crude oil bounced back from 13-year lows on Friday after the United Arab Emirates energy minister said the Organization of the Petroleum Exporting Countries was open to cutting output. Prices have recently been in a tailspin on concern over a supply glut and the inability of some of the largest oil-producing countries to address it. West Texas Intermediate crude oil added 12.3% to $29.44 a barrel on Friday after closing at its lowest level since May 2003 a day earlier.
This isn't the first time talk of production cuts in the Middle East have boosted prices in the past few weeks.
"The market has had some practice regarding this kind of exercise in recent weeks, with prior rallies off Russian comments and the Venezuelan tour generating prior recovery attempts, helping to train the market to be both skeptical regarding the prospects for actual cuts and, if anything, more aggressive in trading on the headlines anyway," said Timothy Evans, energy futures specialist at Citi.
Gold fell back from massive gains achieved a day earlier. Safe-haven assets had jumped on Thursday as investors fled riskier equities markets with gold climbing by its most in a year. Gold was down 0.7% to $1,238.60 an ounce, down for only its second time in 11 days.