The US markets ended mostly higher on Friday, with the major averages have climbed well off their early lows, with the Nasdaq and the S&P 500 reaching positive territory. Traders took support with revised data released by the University of Michigan showed consumer sentiment in the U.S. has improved much more than previously estimated in the month of January. The University of Michigan said its consumer sentiment index for January was upwardly revised to 56.4 from a preliminary reading of 54.0. With the unexpected upward revision, the consumer sentiment index is well above the December reading of 52.9. However, traders kept an eye on the latest geopolitical developments, with easing concerns about tensions over Greenland being replaced by renewed worries about a confrontation between the U.S. and Iran.

On the sectorial front, Software stocks turned in some of the market's best performances on the day, driving the Dow Jones U.S. Software Index up by 2.2 percent. A continued surge by the price of gold also contributed to considerable strength among gold stocks, as reflected by the 1.5 percent gain posted by the NYSE Arca Gold Bugs Index.

Nasdaq increased 65.22 points or 0.28 percent to 23,501.24 and S&P 500 added 2.26 points or 0.03 percent to 6,915.61, while Dow Jones Industrial Average fell 285.3 points or 0.58 percent to 49,098.71.