The US markets ended higher on Friday with Dow Jones Industrial Average gaining over 490 points. The strength that emerged on markets have reflected renewed optimism about the Federal Reserve lowering interest rates at its next monetary policy meeting in December. CME Group's FedWatch Tool indicates the chances of a quarter point rate cut at the Fed's December meeting have soared to 71.5 percent from just 39.1 percent on Thursday. The increased bets on a rate cut next month come following dovish remarks by New York Federal Reserve President John Williams. Williams described monetary policy as being modestly restrictive and said he sees room for a further adjustment to rates in the near term.

On the sectoral front, Housing stocks turned in some of the market's best performances on the day, with the Philadelphia Housing Sector Index soaring by 4.0 percent. Substantial strength was also visible among airline stocks, as reflected by the 3.0 percent surge by the NYSE Arca Airline Index. Biotechnology, oil service, healthcare and computer hardware stocks also showed strong moves to the upside, moving higher along with most of the other major sectors.

Dow Jones Industrial Average rose 493.15 points or 1.08 percent to 46,245.41, Nasdaq surged 195.03 points or 0.88 percent to 22,273.08 and S&P 500 gained 64.23 points or 0.98 percent to 6,602.99.