The U.S. stock market continued much-needed break from recent volatility Thursday as the Dow climbed 1.5 percent, the Wall Street Journal reported. With that, the industrial index closed at 16,717 points, up 254.

The rally was driven by positive earnings reports among blue chips, especially Caterpillar. The California-based company, a machinery and engine maker, is "not the biggest out there (but) is typically viewed as a bellwether of growth in the emerging markets," Wells Fargo strategist Brian Jacobsen told the Journal.

The award for the day's best performer, though, went to Minnesota-based 3M, which was up 6.1 percent after it completed a strong quarter and an presented an improved forecast for the rest of the year.

Caterpillar and 3M combined were responsible for one third of the Dow's rally, MarketWatch calculated. The site interpreted today's developments as "sign that earnings still matter for the stock market."

High expectations on employment numbers also helped fuel the trend. "(The) trend in jobless claims suggests we are going to see another good job increase for October," RidgeWorth Investments asset allocator Alan Gayle told Bloomberg.

Amid the festive mood, some analysts found time to ponder what, exactly, may be to blame for last week's volatility. Overall, the Dow has fallen 3.4 percent in October amid weak economic data in the eurozone raised the specter of possible deflation, the Wall Street Journal reported.

Investors may also be worried about how whether the U.S. economy proves sturdy enough to withstand possible interest-rate increases by the Federal Reserve, Everbank strategist Chris Gaffney told CNBC. "This week, these earnings show perhaps it will," he said.

The strong performance of the stocks was felt in the bond market, as well, where demand for sovereign debt waned. The 10-year U.S. Treasury note's yield climbed to 2.287 percent; yields go up prices go down, the Wall Street Journal noted. CNBS went so far as to say that investors "fled perceived safe-havens," including Treasuries.