U.S. stocks closed higher on Friday as investors shrugged off renewed concerns about the health of the banking sector.
The Dow Jones Industrial Average rose 238.37 points, or 0.52 percent, to 46,190.61. The S and P 500 added 34.94 points, or 0.53 percent, to 6,664.01. The Nasdaq Composite Index increased by 117.44 points, or 0.52 percent, to 22,679.98.
Nine of the 11 primary S and P 500 sectors ended higher, with consumer staples and financials leading the gainers by rising 1.23 percent and 0.84 percent, respectively. Meanwhile, utilities and materials led the laggards by dropping 0.38 percent and 0.35 percent.
Shares of regional banks rebounded after steep losses last week. Zions Bancorporation jumped 5.8 percent after Baird upgraded the stock.
Western Alliance Bancorp also recovered, and investment bank Jefferies climbed nearly 6 percent after Oppenheimer raised its rating to "outperform."
Fifth Third Bancorp rose 1.3 percent after reporting better-than-expected quarterly earnings, easing concerns about wider credit risks in the sector. The lender said profits increased despite higher credit losses tied to exposure to bankrupt subprime auto lender Tricolor.
"We don't think there are systemic credit problems for banks -- most of what we're seeing so far is a function of a few specific situations (First Brands and TriColor) while credit quality broadly if anything is tracking better than anticipated," wrote Adam Crisafulli of Vital Knowledge in a note.
The U.S. federal government shutdown has entered its third week, now tied for the third longest in history. Federal workers' paychecks remain suspended as U.S. President Donald Trump threatens to block back pay, while courts weigh his effort to dismiss thousands of employees.
Some lawmakers warned the shutdown could stretch into November or even beyond Thanksgiving.
U.S. stocks close higher after volatile week
U.S. stocks close higher after a volatile week
