US stocks reversed earlier losses and turned positive by mid-morning trading following the news that Saddam Hussein's two sons may have been found in Iraq during a shoot-out in which US soldiers killed four high-ranking Iraqis.
The Dow Jones industrial average rose 24.16 points, or 0.27 per cent, to 9,120.85, after trading in the red for most of the morning. The broader Standard & Poor's 500 Index rose 5.07 points, or 0.52 percent, at 983.87.
The technology-laced Nasdaq Composite Index was up 15.13 points, or 0.9 percent, at 1,696.54, adding to earlier gains.
"There are some rumors about Saddam Hussein's sons beingkilled or captured in a firefight. That clearly gave a boost to the futures market," said Keith Keenan, vice president of institutional trading at brokerage Wall Street Access.
A US official, speaking on condition of anonymity, toldReuters there was "a pretty decent chance" Saddam's sons Uday and Qusay were present in the shoot-out in Mosul.
US forces have been hunting for Saddam and his sons because it appeared they probably had survived two bombings during the war that specifically targeted them.