Stocks rose on Friday after a week-long sell-off as oil prices stabilized from recent highs.
The Nasdaq Composite jumped more than 1 percent led by semiconductor issues.
Brent crude futures fell slightly to $111 a barrel, backing off highs after a source said Saudi Arabia raised its output. The futures touched a two-and-half year high of $119.79 on Thursday.
The market showed signs of recovery on Thursday afternoon, trimming early losses to close well off lows. But investors still expect a correction as steep as 10 percent after a six-month rally.
We got a little bit oversold in a very short period of time this week so it's normal to get this kind of a rebound, said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
The market is likely to bounce a little more, but not too much since there is still more to the downside after such a strong rally and ongoing geopolitical concerns.
The Dow Jones industrial average <.DJI> was up 64.29 points, or 0.53 percent, at 12,132.79. The Standard & Poor's 500 Index <.SPX> added 11.47 points, or 0.88 percent, at 1,317.57. The Nasdaq Composite Index <.IXIC> put on 32.35 points, or 1.18 percent, at 2,770.25.
The easing fears over oil offset data that showed the U.S. economy grew slower than initially estimated in the fourth quarter.
(Reporting by Angela Moon editing by Jeffrey Benkoe)