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The Dow Jones Industrial Average was up 178.31 (1.50 percent) to 12,072.10.
The broad-based S&P 500 added 16.22 (1.31 percent) at 1,255.91, while the tech-heavy Nasdaq Composite edged up 27.36 (1.04 percent) to 2,652.51.
Italian lawmakers on Friday gave their initial approval to a package of key economic reforms aimed at staving off bankruptcy; Greece's new unity was sworn in to ratify the crucial EU bailout; and in Portugal lawmakers gave preliminary approval to the government's 2012 austerity budget.