The Dow Jones Industrial Average was higher by 170 points, or about 0.7%, while the S&P 500 and Nasdaq Composite were up 0.8% and 1.2% respectively.
On JetBlue's fourth-quarter earnings call Friday, CEO Robin Hayes said that while there has not yet been a "significant impact" on its bookings or operations, "we are close to a tipping point" as security screeners, air traffic controllers, and other federal aviation workers were about to miss a second paycheck.
Meanwhile, Coffee giant Starbucks gained close to 3% after reporting better-than-expected top and bottom line results, and raising its forecast for the adjusted-earnings-per-share forecast for the fiscal year.
Traders shrugged off disappointing quarterly results from Intel , which sent shares sliding by 5.7%. The chipmaker missed on earnings and revenue and said it sees trouble in China. "Our trade and macro [economic] concerns, especially in China, have intensified," interim CEO Bob Swan said on the earnings call.
On the commodities front, gold jumped 1.3% to near $1,298 an ounce, and was flirting with its first close above $1,300 for the first time in seven months.
Meanwhile, Treasury yields rose, with the 10-year up 4 basis points at 2.76%. The US dollar traded down 0.7% versus a basket of its major peers.