Bernanke's comments at the Jackson Hole symposium of central bankers and Intel's warning triggered a sharp sell-off in global shares, and investors piled into the US dollar for safety, causing oil and gold prices to drop.

But those losses proved short-lived.

In mid-day trade, the Dow Jones Industrial Average rose 105.65 points, or 1.06 percent, at 10,091.46. The Standard & Poor's 500 Index gained 10.47 points, or 1.00 percent, at 1,057.69. The Nasdaq Composite Index climbed 19.50 points, or 0.92 percent, at 2,138.19.

Intel Corp, a Dow component, said third-quarter revenue would be below its previous outlook, perhaps by as much as $1 billion due to weaker demand for personal computers. The stock fell after the forecast, but later traded up 1.35 percent at $18.42.

Europe's top shares held gains into the close of trade, but lost ground for a third straight week. The FTSEurofirst 300 index gained 0.6 percent on the day, but slipped 0.27 percent on the week.

The MSCI All-Country World equity index rose 0.72 percent, off a seven-week low hit earlier this week. The index is down 3.3 percent so far in August. The Thomson Reuters global stock index gained 0.77 percent. Emerging stocks climbed 1.46 percent.

The euro recovered against the US dollar after Bernanke's comments and Intel's report.

After slipping as low as $1.2676 according to Reuters data in the initial reaction, the euro traded at $1.2746, up 0.21 percent.

The dollar, however, remained up against the yen, gaining 1 percent at 84.29.

Analysts said the dollar would remain supported against other safe haven assets because Bernanke gave no firm commitment the central bank would provide additional easing, which could put downward pressure on interest rates.

The yen is under pressure as speculation persisted that Tokyo might take steps to stem export-damaging strength in the Japanese currency. The yen is hovering near a 15-year peak of 83.60 against the greenback on safe-haven trade that is choking off its already slumbering economy.

US Treasuries prices fell on profit-taking from recent rallies after Bernanke's speech signaled no imminent bond buying by the central bank.

The benchmark 10-year Treasury fell 1-10/32 points in price, driving the yield up to 2.63 percent.

German Bund futures settled 28 ticks lower to 133.66, with traders saying the market was disappointed that Bernanke didn't announce any new stimulus measures.

Meanwhile, oil rose in volatile trading on Friday.

US crude for October delivery rose 88 cents, or 1.2 percent to $74.24 a barrel by 12:11 p.m. EDT (1611 GMT), having traded from $72.04 to $74.36.

US crude prices on Thursday and Friday were trying to consolidate a recovery from Wednesday's $70.76 intraday low, which was weakest front-month crude price since the $70.75 low struck 11 weeks before on June 8.

Only a settlement above the Aug. 20 close at $73.46 a barrel will allow US front-month crude futures to avoid a third straight weekly loss.

On Friday October Brent crude rose $1.02 to $76.04 a barrel.