In closing trade the Dow Jones Industrial Average was up 46.54 points (0.39 percent) at 11,870.02.

The broader S&P 500 rose 4.01 points (0.33 percent) to 1,215.83, while the tech-heavy Nasdaq Composite edged up 1.70 points (0.07 percent) to 2,541.01.

Sentiment got a bump from the report that new jobless claims hit a three-year low last week, suggesting layoffs are slowing down and US businesses are feeling more confident.

"The latest unemployment claims readings are among the most promising signs in the recovery to date that the labor market may be seeing an uptick in job creation," said RDQ Economics.