The Dow Jones Industrial Average rose 346.41 points, or 1.4 percent, to 25,146.39, the S&P 500 gained 23.55 points, or 0.86 percent, to 2,772.35 and the Nasdaq Composite added 51.38 points, or 0.67 percent, to 7,689.24.

The benchmark 10-year U.S. Treasury yield rose to a near two-week high after data showed that the U.S. trade deficit unexpectedly fell to a seven-month low in April, supporting the view of an acceleration of domestic economic growth in the second quarter. [US/]

The S&P financial sector, which rose 1.8 percent, was the S&P's biggest boost as bank stocks rose along with Treasury yields. Higher interest rates tend to help bank profits. The bank index rose 2.3 percent as the sector was also helped by a rise in mortgage applications for the first time in seven weeks.

Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois cited economic data and trade news as reasons for the broader market's advance.