Technology stocks led the way higher after a broking house upgrade on the sector and an encouraging profit forecast from computer giant Apple.
There is also market chatter that internet search company Yahoo might be pulling together a deal with America Online to head off Microsoft's takeover attempt.
Elsewhere, retail goliath Wal-Mart lifted its earnings projections, but JC Penney announced a big drop in its comparable store sales, sparking worries about consumer activity in the US.
New figures out of Washington show the US trade deficit ballooning to $US62.3 billion in the month of February, a much bigger shortfall than expected by analysts.
On the New York Stock Exchange, the Dow Jones industrial average closed 55 points higher at 12,582. The high-tech Nasdaq composite index was up 30 points at 2,352.
In Europe, key markets suffered a third day of declines, hurt by the record high level of the euro against the US dollar.
Losses on the British market were mild, with London's FT-100 index slipping 19 points to 5,965.
Yesterday in Australia, the financial sector was again the weak spot.
The All Ordinaries index fell another 68 points to close at 5,516 which is a slide of 1.2 per cent.
Shares in the Commonwealth Bank dropped 74 cents to $41.11, while ANZ eased another 39 cents to $20.57.
However, the record high oil prices sent Woodside Petroleum up $1.54 to $56.55.
Looking at the overnight session on the Sydney Futures Exchange and the Share Price Index 200 contract has closed up two points at 5,481.
The ten-year bond contract is down three-and-a-half points at 93.88, with the implied yield rising to 6.12 per cent.
On foreign exchange markets, the Australian dollar has edged up overnight.
About 7:10am (AEST) it was buying 93.19 US cents, 0.5919 euros, 94.93 Japanese yen and 47.27 pence.
Gold was being quoted at $US928.80 an ounce.
Oil prices eased back after insistence by Saudi Arabia that markets are amply supplied.
The spot price of West Texas crude had slipped 82 cents to $US110.70 a barrel.
Source: By Australian Broadcasting Corporation
