Wall Street gained on optimism about the outlook for corporate earnings, and a fresh wave of merger activity including AT&T's agreement to buy Time Warner also bolstered sentiment.
In 2.26pm trading in New York, the Dow Jones Industrial Average gained 0.4 per cent, while the Nasdaq Composite Index climbed 0.9 per cent. In 2.11pm trading, the Standard & Poor's 500 Index gained 0.4 per cent.
"It's been a pretty good quarter for earnings so far and we might finally see the end of earnings recession," Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas, told Reuters.
"If you look at the companies that have reported so far, most of them have outperformed the long-term average in profit and revenue," Frederick noted.
The Dow rose as gains in shares of Microsoft and those of Boeing, recently trading 2 per cent and 1.6 per cent higher respectively, outweighed slides in shares of Chevron and those of Merck, recently down 1 per cent and 0.7 pe rcent respectively.