Stocks rose as higher oil prices lifted shares of energy companies and fund managers snapped up this quarter's winners to burnish their portfolios.

The Dow Jones industrial average gained 90.99 points, or 1.08 percent, to end at 8,529.38. The Standard & Poor's 500 Index was up 8.33 points, or 0.91 percent, at 927.23. The Nasdaq Composite Index was up 5.84 points, or 0.32 percent, at 1,844.06.

European shares closed higher, with financials given a boost by broker upgrades and rising crude prices lifting energy stocks.

The pan-European FTSEurofirst 300 index of top shares closed up 1.8 percent at 859.63 points after falling nearly 2 percent last week.

Japan's Nikkei average fell 1 percent, erasing earlier gains, as trading firms such as Mitsubishi Corp slid on lower oil prices and Daiwa Securities tumbled on a share sale announcement.

The Nikkei has taken a breather from a three-month rally that buoyed it to an eight-month intraday high of 10,170.82 earlier in June but is still on track for its best quarter since 1995, having risen around 22 percent so far in the April-June quarter.