The S&P 500 rose 1 percent in late morning trading on Thursday led by banks and homebuilders after data showed an unexpected jump in pending home sales in October and after European leaders decided to extend a liquidity safety net for vulnerable lenders.

The Dow Jones industrial average <.DJI> gained 101.00 points, or 0.90 percent, to 11,356.78. The Standard & Poor's 500 Index <.SPX> rose 12.41 points, or 1.03 percent, to 1,218.48. The Nasdaq Composite Index <.IXIC> added 22.01 points, or 0.86 percent, to 2,571.44.

Further supporting banks, Goldman Sachs upgraded its rating on financial sector stocks.

(Editing by Jeffrey Benkoe)