Stocks capped off another strong week with a broad rally, as a bigger-than-expected rise in consumer sentiment bolstered the view of an economy that is faring better than some had feared.

U.S. STOCKS, BONDS

The Dow Jones Industrial Average climbed 121.18 points, or 0.8%, to 15354.40. A surge higher in the final hour of trading, which has been a familiar pattern during the market's extended rally, propelled the Dow to its third record close in four sessions.

The Standard & Poor's 500-stock index rose 17.00 points, or 1%, to 1667.47, and the Nasdaq Composite Index advanced 33.72 points, or 1%, to 3498.97. The S&P 500 rose 2% during the week, the fourth-straight weekly gain, as the market shrugged off Thursday's biggest one-day decline in the benchmark indexes since May 1.

A preliminary reading of the Thomson-Reuters/University of Michigan consumer-sentiment index for May rose more than expected to help fuel Friday's rise. And the Conference Board's Leading Economic Index for April increased, exceeding forecasts.

The strong data helped the more economically sensitive sectors, such as energy, industrials and financials, pace the market's gains. Banking firm J.P. Morgan Chase and aerospace company Boeing were the top advancers within the Dow.

In corporate news, J.C. Penney dropped 4.2% after the department-store chain reported a bigger-than-expected quarterly loss and revenue and same-store sales that fell.

EUROPEAN STOCKS, BONDS

Europe's benchmark stock index closed at its highest level since June 2008 on Friday, with banks in the driving seat after better-than-expected data from the U.S. removed some worries about the country's recovery.

The Stoxx Europe 600 index rose 0.2% to close at 308.72, posting a 1.2% weekly gain. The upbeat end to the week marked the fourth straight week in positive territory, after massive central-bank easing globally recently encouraged investors to move into the equity market instead of the lower-yielding and traditionally safer government bond markets.

Banking shares were among the biggest gainers Friday, after UBS said the global economy is healing and lifted the European banking and diversified financial sectors to small overweight from small underweight, to reflect a view that both the macro and micro outlooks for financials are improving.

The analysts said they had preferences for Nordic and U.K. banks, while favoring Royal Bank of Scotland Group PLC, up 5.7%, Nordea Bank AB, up 2.7%, and Credit Suisse Group AG, up 1.7%.

Car makers also saw solid moves, after data from the European Automobile Manufacturers' Association showed the European Union car market for new passenger cars grew 1.7% in April compared with last year, marking the first monthly improvement since September 2011.

Renault SA gained 3.6% in Frankfurt and Daimler AG picked up 3.9% in Frankfurt. Shares of Peugeot SA soared 10% in Paris, further boosted after the firm said it has agreed with the CGT union to end the workers' strike that began at the Aulnay car plant in January.

For the broader European stock markets, investors took a clue from the U.S., where stocks traded higher after good news on consumer sentiment.

Germany's DAX 30 index closed at an all-time high, up 0.3% at 8,398.00, helped by the benchmark's auto makers. That was the ninth straight day of records for the DAX. On the week, it gained 1.4%. France's CAC 40 index gained 0.6% to 4,001.27, sending it 1.2% higher on the week. The U.K.'s FTSE 100 index added 0.5% to 6,723.06, a 1.5% weekly gain.

ASIA-PACIFIC STOCKS, BONDS

Japanese stocks hit a fresh multiyear high Friday following further weakness in the yen. The Nikkei ended at its highest level since December 2007, up 0.7% at 15,138.12.

Japanese property developers rebounded after several days of selling, with Mitsui Fudosan Co. up 2.4% and Mitsubishi Estate Co. 3.4% higher. In addition, Japanese leasing companies rose on expectations for eased financial conditions: Orix Corp. jumped 9.2% and Mitsubishi UFJ Lease & Finance soared 17.3%.

Earnings season continued in Tokyo, with Nippon Sheet Glass Co. sliding 4.8% after it reported a net loss for the recently ended financial year that undershot analyst expectations. Hitachi jumped 3.2% after announcing that it is aiming for a net profit of over Y350 billion for the business year ending March 2016.

Japanese stocks once again outperformed their Asian peers for the week, gaining 3.6% over the last five sessions. The only other regional market to come close to Japan's performance was South Korea's Kospi Composite, which was closed for a public holiday Friday.

Stocks in Seoul were up 2.2% for the week, with the market buoyed by local car makers, recovering from declines brought about by the yen's depreciation against the dollar.

In China, the Shanghai Composite Index jumped 1.4% to 2282.87, with coal and construction companies leading the gains on hopes of a step-up in government spending after the State Council said it simplified the approval process for a wide range of investment projects. Hong Kong's Hang Seng Index was closed for a public holiday.

COMMODITIES

Copper on the London Metal Exchange closed higher Friday, although earlier gains stalled in the European afternoon in a quiet trading session as the dollar's strength resumed.

Meanwhile, the potential ability of warehouse exit queues to affect prices came back into focus with global stockpile shifts showing volatility this month. By the close of open-outcry trading, copper was 0.3% higher on the previous day's settlement at $7,300 a metric ton, having drifted a touch from its intraday high as the dollar resumed a stronger pattern against the euro.

Oil futures rose to a one-week high Friday, as broader markets rallied on positive U.S. economic data. Light, sweet crude for June delivery settled 86 cents, or 0.9%, higher at $96.02 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled 86 cents, or 0.8%, higher at $104.66 a barrel.

Gold fell for the seventh straight trading day, notching its longest losing streak since the financial crisis as the metal approached a fresh low, fueled by U.S. indicators that pointed to an improving economy. Gold for May delivery, the front-month futures contract, slid $22.20, or 1.6%, to $1,364.90 a troy ounce on the Comex division of the New York Mercantile Exchange. Compiled from MORRISON SECURITIES PTY. LTD.