The 30-stock Dow Jones index gained 522.09 points, or 1.26 percent, closing at 42,025.19, its first close above the 42,000 mark. The S&P 500 increased by 1.7 percent, ending at 5,713.64, surpassing 5,700 for the first time. The Nasdaq Composite also rose sharply by 2.51 percent to close at 18,013.98.

U.S. stocks were higher after the close on Thursday, as gains in the Technology, Industrials and Basic Materials sectors led shares higher. At the close in NYSE, the Dow Jones Industrial Average rose 1.

U.S. stocks rose after the Federal Reserve lowered its benchmark interest rates by 50 basis points to a range of 4.75% to 5%. That was the first rate cut in over four years that marked the beginning of a monetary-easing cycle in the world's largest economy.