Stocks also got a boost Thursday as investors were optimistic about next week's signing of a phase-one trade deal between the USA and China. The United States and China also moved toward an interim deal in their trade war. It hit a record high of 3,267 after President Donald Trump refrained from launching a new offensive against Iran, which rained two US-Iraqi airbases with missiles on Wednesday without killing anyone. Meanwhile, hopes for calmer conditions on the trade front ahead of next week's signing of the "phase one" trade deal between America and China helped boost stocks. Technology stocks rose 0.9%, the most among the major S&P sectors.
Asian shares rose Friday as worries receded the United States and Iran might be stepping closer to the edge of war, and US indexes hit records.
"Some of the things that have been worrying the market have gotten pushed to the side of the table", said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
Stocks ended lower Friday, falling back from all-time highs, as traders assessed weaker-than-expected jobs data to end a volatile week full of geopolitical concerns.
A US drone struck a convoy at Baghdad International Airport last Friday, killing Iranian Major General Qassem Soleimani, sparking outrage and revenge threats from Tehran.
At 12:01 p.m. ET, the Dow Jones Industrial Average was up 204.40 points, or 0.72%, at 28,788.08, the S&P 500 was up 22.02 points, or 0.68%, at 3,259.20 and the Nasdaq Composite was up 64.35 points, or 0.71%, at 9,132.94.
Kohl's dropped almost 8% after the department store said sales fell in the holiday season from a year earlier, and that it expects profit to be at the lower end of its guidance for fiscal 2019. J C Penney Co Inc dropped 5.8%, after disappointing same-store sales numbers.
With the fourth-quarter earnings season kicking off next week, analysts expect profits for S&P 500 companies to drop 0.6 percent in their second consecutive quarterly decline, according to IBES data from Refinitiv.
Advancing issues outnumbered decliners by a 1.43-to-1 ratio on the NYSE and a 1.81-to-1 ratio on the Nasdaq. The S&P 500 and Nasdaq each shed almost 0.3%.
Volume on USA exchanges was 7.30 billion shares, compared with the 7.06 billion-share average for the full session over the last 20 trading days.