By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

U.S.-listed Deutsche Bank shares jump 6%

U.S. stocks climbed in early Friday trade boosted by a jump in Deutsche Bank AG shares as worries about the bank's balance sheet, which led to a firm selloff Thursday, subsided somewhat.

The S&P 500 index rose 7 points, or 0.3%, to 2,158 with all the main sectors trading higher.

The Dow Jones Industrial Average gained 114 points, or 0.6%, to 18,260, while the Nasdaq Composite Index climbed 18 points, or 0.4%, to 5,288.

"Central banks have spent eight years convincing markets that they would not let another Lehman-type failure. But belief in such a central bank put, or the buffer that there will be liquidity in a time of crisis, is dissipating, which is why we are seeing such volatility because of what's happening to Deutsche Bank," said Steve Chiavarone, associate portfolio manager at Federated Global Allocation Fund.

Read: Why a Deutsche Bank bust wouldn't be as bad as Lehman's (http://www.marketwatch.com/story/why-a-deutsche-bank-bust-wouldnt-be-as-bad-as-lehmans-2016-09-30)

Markets have been hit over the past week after a report that a possible $14 billion fine by the Justice Department would cripple Deutsche Bank. The Dow industrials closed nearly 200 points lower on Thursday (http://www.marketwatch.com/story/wall-street-stocks-could-struggle-as-euphoria-over-opec-deal-fades-2016-09-29) after a report that some of the lender's biggest clients were pulling cash and securities or dialing back trading activity through the bank (http://www.marketwatch.com/story/fearful-clients-pull-billions-of-dollars-out-of-deutsche-bank-2016-09-30). Wall Street's CBOE Volatility index , or "fear gauge," jumped the most in three weeks (http://www.marketwatch.com/story/wall-streets-fear-gauge-jumps-the-most-in-3-weeks-on-deutsche-bank-worry-2016-09-29) at one point in that session.

Read:Deutsche Bank crisis threatens to roil global markets (http://www.marketwatch.com/story/a-crisis-in-european-banks-threatens-to-roil-global-markets-2016-09-28)

"It is surprising to hear the [German Chancellor] Merkel saying they will not help Deutsche Bank, but it's also possible she is saying this to get the U.S. government to rethink the size of the fine. Everybody knows the cost of allowing a major bank collapse," said Chiavarone.

Friday marks the end of the week, month and quarter, and the S&P 500 is down 0.2%, down 0.5%, and up 3%, respectively, with one session left to go.

Frankfurt-listed shares of Deutsche Bank (DBK.XE) briefly fell to their lowest level on record Friday, triggering sharp losses across European stock indexes. But the German bank's U.S.-listed shares (DBK.XE) rebounded seemingly after a J.P. Morgan Chase & Co. report that estimated the fine by Justice Department will be about $5.4 billion, much lower than earlier reports. U.S.-listed shares shot up more than 6% Friday, after closing 6.7% lower in the prior session. Meanwhile, shares traded in Europe pared losses, and were down slightly.

Deutsche Bank worries: At one point, the German lender's shares dropped below 10 euros and traded at a record low, following Thursday's reports that certain clients were reducing exposure to Germany's largest bank. The concerns about the Frankfurt lender was a drag on Europe's markets.

The Stoxx Europe 600 index (http://www.marketwatch.com/story/deutsche-bank-shares-hit-a-record-low-weighing-heavily-on-european-markets-2016-09-30) fell 0.5%, as banks across the region took a battering.

"While we do not rule out the possibility of a renewed tension in the financial markets, the amplitude of such scenario is hard to price in," said Ipek Ozkardeskaya, senior market analyst at LGC.com, in a note to clients.

"We are already in a low-rate, postcrisis environment as the result of the 2007-2008 subprime crisis. The financial markets are certainly not well armored to face another financial crisis," Ozkardeskaya said.

Economic docket: Consumers spending was barely changed in August (http://www.marketwatch.com/story/consumer-spending-softens-in-august-2016-09-30), while personal income inched and savings rate inched higher. Inflation also inched up, but remains below the 2% target set by the Federal Reserve.

Stocks to watch:Costco Wholesale Corp (http://www.marketwatch.com/story/costco-ernings-get-boost-from-switch-to-visa-2016-09-30).(COST) reported a surprise jump in earnings, helped by lower credit card fees after its new deal to accept Visa (V) cards.

Shares of Cognizant Technology Solutions Corp (http://www.marketwatch.com/story/cognizant-technologys-stock-tumbles-after-disclosure-of-internal-foreign-payments-probe-2016-09-30).(CTSH) tumbled after the consulting company disclosed an internal investigation it whether certain payments it made to facilities in India violated the U.S. Foreign Corrupt Practices Act.

Other markets: Oil prices were stable Friday, with U.S. crude flat at $47.86 a barrel. The U.S. dollar and gold prices were unchanged.

Asian markets (http://www.marketwatch.com/story/asian-shares-rattled-by-concerns-over-oil-deutsche-bank-2016-09-30) finished largely lower, with the Nikkei 225 index dropping 1.4%.

(END) Dow Jones Newswires

September 30, 2016 10:19 ET (14:19 GMT)