vestors appeared to shake off a Citigroup profit warning tied to the subprime mortgage crisis. The Dow Jones Industrial Average was up 99.17 points (0.71 percent) to 13,994.80 around 1528 GMT and the tech-heavy Nasdaq advanced 17.80 points (0.66 percent) to 2,719.30.
The broad-market Standard & Poor's 500 index gained 10.23 points (0.67 percent) at 1,536.98.
Wall Street bounced higher after another positive week in which investors appeared to be looking beyond the gloomy outlook for the US economy and betting that current problems in the housing and credit sectors will be short-lived.
"The markets appear to be coming to the conclusion that credit issues and a weak housing sector will not lead to a recession. That reduces the downside risk to the market, and provides a better underlying tone," said Dick Green of Briefing.com.
The Dow rose above 14,000 points for the first time since July in morning trading as investors hoped for easier credit in the fourth quarter, climbing as high as 14,008.70 before paring gains.
The last time the Dow had climbed above the psychological 14,000-point barrier was July 19, when it closed at 14,000.41 points.
The 30-stock index subsequently was battered in the financial turmoil that rocked markets in August as the extent of the US subprime mortgage crisis emerged.
Analysts say many investors believe the Federal Reserve half-point rate cut on September 18, and possibly more cuts in the coming months, will help the world's biggest economy weather the storm.
Fred Dickson, chief market strategist of DA Davidson & Co., sounded a cautious note ahead of Friday's unemployment report for September.
"Heading into the fourth quarter, we are aware of the big gains posted in the fourth quarter in each of the last four years. Given the weakening economy, we aren't optimistic that history will repeat itself this fall," Dickson said.
"We aren't looking for a major correction, but lots of stock price volatility especially during the next six weeks as investors digest third-quarter earnings reports and what we believe will be tepid fourth-quarter earnings guidance."
