Stocks rallied as worries about Dubai's debt problems eased, gold hit a record above $1,200 and GE and Comcast moved closer to a deal on NBC Universal.
Investors also kept an eye on auto sales, which were down from October but mostly higher from a year ago, and the day's better-than-expected economic readings on construction spending and pending home sales.
The Dow Jones industrial average added 127 points, or 1.2%, closing at the highest point since Oct. 2, 2008.
The S&P 500 index gained 13 points, or 1.2%, and closed just short of a 14-month high.
The Nasdaq composite rose 31 points, or 1.5%, and remained short of a 14-month high hit a week ago.
