Goldman Sachs Group Inc surged 8.29 percent and was on pace for its best day in seven years after topping quarterly revenue estimates.
Bank of America Corp rose 7.63 percent after reporting a better-than-expected quarterly profit on growth in its loan book.
Their results drove a 2.39 percent gain in the financial sector, with the S&P banking subsector jumping 3.07 percent.
Adding to the positive mood was a $22 billion buyout offer by financial technology provider Fiserv Inc for First Data Corp, the largest deal in the financial technology sector.
First Data soared 20.67 percent, while Fiserv's shares fell 4.21 percent.
A strong start to the US earnings season, trade optimism and hopes of a slower pace in interest rate hikes have helped S&P 500 recoup some of its losses from a recent rout. The index is now about 12 percent away from its Sept. 20 record close.
"There is hope for this earnings season, and Goldman Sachs and Bank of America have got it started off on the right foot," said Jake Dollarhide, chief executive officer at Longbow Asset Management in Tulsa, Oklahoma.
The benchmark index is near its 50-day moving average, a key indicator of short-term momentum, for the first time since Dec. 4. This comes after the Nasdaq crossed that milestone in the prior session.
At 12:27 a.m. EDT the Dow Jones Industrial Average was up 134.13 points, or 0.56 percent, at 24,199.72, the S&P 500 was up 7.50 points, or 0.29 percent, at 2,617.80 and the Nasdaq Composite was up 13.14 points, or 0.19 percent, at 7,036.98.
The energy sector fell 2.39 percent, the most among the four S&P sectors in the red.
Among other company earnings, Nordstrom Inc forecast full-year profit at the lower end of its prior estimates, sending its shares down 6.75 percent. United Airlines rose 5.60 percent after posting a quarterly profit beat.