The Dow average and the S&P 500 climbed to fresh closing highs for the year on Friday as energy companies' shares soared on oil above $51 a barrel, while the dollar slipped and gold prices rose.
The yield on the two-year U.S. Treasury note hit a three-year high at 3.55 percent after the Commerce Department said gross domestic product grew at an annual rate of 3.8 percent in the fourth quarter -- stronger than it had previously thought.
The upward revision in GDP growth reinforced expectations for more interest-rate hikes from the Federal Reserve.
The boom in commodity prices drove the CRB Index over the 300 mark on Friday for the first time in 24 years. The index of 17 commodity futures, watched by economists and investors as a gauge of inflation and economic activity, closed at 300.23 -- its first reading over 300 since April 1981.
COMEX April gold rose 40 cents to end at $436.10 an ounce, not far from the 2005 high it hit on Thursday at $438.20.
In New York, crude for April delivery rose 10 cents to settle at $51.49, after rising as high as $51.90 -- near Thursday's peak of $52.05, a four-month high.
The Dow Jones industrial average rose 92.81 points, or 0.86 percent, to end at 10,841.60. The Standard & Poor's 500 Index advanced 11.17 points, or 0.93 percent, to close at 1,211.37. The technology-laced Nasdaq Composite Index finished up 13.70 points, or 0.67 percent, at 2,065.40.
"The momentum of the last couple of days suggests to investors that despite high energy prices, it is still OK to be buying stocks -- and there is leadership in energy and materials," said Joseph Battipaglia, chief investment officer of Ryan, Beck & Co.
With crude futures prices approaching $52 a barrel, Prudential Equity Group raised its rating on Exxon Mobil and increased price targets on major oil companies.
Exxon jumped 3.5 percent to $63.26 and ConocoPhillips Co. climbed 1.9 percent to $112.32. Earlier, both stocks hit all-time highs.
On Wall Street, Friday's gains came as a three-day rally followed Tuesday's big sell-off and put the Dow back into positive territory for the year. The Dow is up 0.54 percent for the year, while the S&P 500 is almost flat, down 0.05 percent, and the Nasdaq is off 5.1 percent.
For the week, the Dow rose 0.52 percent, the S&P 500 gained 0.81 percent, and Nasdaq added 0.33 percent.
Semiconductor makers Qualcomm Inc. helped lift the tech-heavy Nasdaq. Qualcomm rose 4.2 percent to $37 and Intel climbed 1.7 percent to $24.09.