Eight of the 11 primary S&P 500 sectors traded higher around market close, with the industrials sector up almost 1.7 percent, leading the gainers.
At 10:05 a.m. ET, the Dow Jones Industrial Average was up 137.21 points, or 0.51%, at 27,225.29 and the S&P 500 was up 5.24 points, or 0.17%, at 3,005.15. The S&P 500 was up 6.65 points, or 0.22 percent, to 3,006.56. The Nasdaq Composite Index rose 48.10 points, or 0.59 percent, to 8,244.14.
The Dow gained 227.88 points, or 0.8%, to 27,088.08.
In Treasuries, benchmark 10-year notes last fell 2/32 in price to yield 2.1272%, from 2.12% late on Thursday. The Russell 2000 index of smaller company stocks dropped 7.13 points, or 0.5 per cent, to 1,557.92.
Powell stressed that the Fed is prepared to cut interest rates to support the economy, raising hopes that the first reduction in its key policy rate in a decade could happen later this month. On Wednesday, Fed chairman Jerome Powell told Congress that many Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for a rate cut.
China reported Friday that its imports from the United States plunged 31% in June amid a tariff war with Washington while its exports to the US market also weakened, falling almost 8%.
Volume on U.S. exchanges was 5.68 billion shares, compared to the 6.71 billion average for the full session over the last 20 trading days.
Scores of Android Apps Collect Data Without Your Permission
Google has now announced that they will fix this issue in the upcoming Android Q update which will be released later this year. Check Point also said the malware had made its way onto the Google Play Store through 11 apps, which Google has since removed.
The move had a swift effect on real estate stocks, utilities and other high-dividend stocks that lose their appeal when bond yields rise.
Gold prices inched higher on Friday as investors shrugged off concerns that stronger-than-expected consumer inflation in the United States could influence the US central bank's decision on aggressive monetary policy easing.
Nonetheless, on the other side of the coin, prescription drug manufacturers such as Pfizer and Merck were tottered following the reveal of the news, ended the day down by 2.5 and 4.5 percent respectively. South Korea's Kospi climbed 0.3% to 2,086.66.
The S&P/TSX composite index closed down 39.78 points to 16,488.12 after hitting an intraday high of 16,525.70.
Corporate earnings will keep investors busy starting next week, when S&P 500 companies begin reporting results for the April-June quarter.
Energy was marginally lower as the August crude contract was up one cent at US$60.21 per barrel and the August natural gas contract was up 3.7 cents at US$2.45 per mmBTU.
CURRENCIES: The dollar fell to 108.33 Japanese yen from 108.50 yen on Thursday. Brent crude oil, the worldwide standard, dropped 49 cents to close at US$66.52 a barrel.