Solid earnings from Berkshire Hathaway and a bank rescue in Europe gave investors enough encouragement to send stock prices higher.
The market was coming off its worst week since 2012.
The Dow Jones industrial average rose 75 points, or 0.5 percent, to close at 16,569 Monday.
The Standard & Poor's 500 index rose 13 points, or 0.7 percent, to 1,938. The Nasdaq composite rose 31 points, or 0.7 percent, to 4,383.
Warren Buffett's Berkshire Hathaway rose 3 percent after the company reported a profit of $6.4 billion last quarter.
Traders were also encouraged by news that Portugal's central bank would prevent the collapse of Banco Espirito Santo, one of the country's biggest banks.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.48 percent.
Original headline: US stocks bounce back after worst week since 2012
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