A rally in the technology sector has pushed the Nasdaq up 1% and the Dow Jones was slightly higher a short time ago.
The Dow Jones was up 35 points, or 0.27%, at 13,393 and the Nasdaq was up 27 points, or 1.06%, at 2,623 as European markets closed.
Financial markets have seen wild swings in recent weeks as investors tried to assess exactly how much damage the credit turmoil has inflicted on real economy.
The latest data showed that at least for now U.S. economic activity remains solid, but the market still expects the Federal Reserve to cut interest rates later this month.
In London the FTSE100 closed up sixty one points at 6,376, with oil shares tracking the higher price of crude.
The crude price edged up towards $75 a barrel on fears that hurricanes in the Atlantic could hit oil supplies.
BP added 10.5p to 561p while Royal Dutch Shell rose 58p to £19.79, also boosted by a broker update.
In Dublin the ISEQ closed up seventy five points at 8515.
Shares in bookmaker Paddy Power jumped by €1.35 to €24.35 after favourable racing results more than doubled its first-half profits.
Food group Kerry's H1 results were also well-received, and its shares surged €1.10 to €19.00.
But bathroom products group Qualceram fell 17 to €1.63 after the housing slowdown affected its Irish sales.
And Tullow closed up 40 cent at €8.05 after reporting a first half increase in oil and gas production.
Earlier today in Asia, Tokyo's key Nikkei-225 index closed down 0.63% at 16,420 points in cautious trade.
