The Dow Jones industrial average rose 90 points, or 0.72%, to 12,625. The Standard & Poor's 500 Index gained 10 points, or 0.81%, to 1,330. The Nasdaq Composite Index climbed 20 points, or 0.72%, to 2,874.
Stocks gains were underpinned by strong US housing data. Existing homes sales reached a 2-year high in May, fueling optimism the housing market is poised for a recovery.
European stocks were broadly higher, with the Stoxx Europe 600 up 1.2%, after the Eurogroup said the eligibility conditions for access to an EFSF/ESM financial assistance for the re-capitalization of financial institutions are satisfied by Spain.
Gold rose 0.2% to $1,577 an ounce, while crude oil futures gained 1.7% to above $80 a barrel.