The broad-based S&P 500 gained 0.7 percent to 2,767.56, while the tech-rich Nasdaq Composite Index advanced 0.8 percent to 7,211.78.
Brent crude rose above $70 a barrel and US crude rose 1.57 percent to $64.58 per barrel, its highest since December 2014, boosted by a surprise drop in USA production and lower crude inventories.
"Energy is in a good space with crude above 64 bucks and you have industrials being driven by airlines stocks". In fact, the roughly 4.3% rise for the Dow Jones Industrial Average and more than 4% rise for the S&P 500 index so far in 2018, represent the best start to a year since 2003, according to WSJ Market Data Group.
Wells Fargo shed 0.7 percent as fourth-quarter earnings rose 17 percent to $6.2 billion, but were marred by $3.3 billion in litigation costs, some in the aftermath of the fake accounts scandal.
That point has not been reached in the first days of 2018. "This quarter may be a little messy because of the tax bill, but there's so much optimism, so much enthusiasm about earnings", says Michael Matousek, head trader at U.S. Global Investors.
"Over time they will have to revise their estimates for earnings higher", said Hugh Johnson of Hugh Johnson Advisors.
Oil-linked shares with big gains included Dow member Chevron, up 3.1 percent, Apache, up 4.7 percent and Schlumberger, up 1.9 percent. All three benchmarks were on track for weekly gains of at least 1%.
Advancing issues outnumbered declining ones on the NYSE by a 1.17-to-1 ratio; on Nasdaq, a 1.54-to-1 ratio favored advancers.