US stocks finished sharply higher today, with the Dow Jones industrial average re-emerging in positive territory for the year, after euro zone leaders reached a tentative deal to bail out Greece.
The improved European picture led to best three-day run this year for the S&P 500 and Nasdaq Composite.
Facebook, Netflix and Amazon all hit record highs, while Apple’s 1.93 percent rise gave the biggest boost to the Nasdaq.
Also making Wall Street more confident, Chinese stocks rose for a third straight day as data showed exports rose while imports slipped in June, a tentative sign global demand might be on the mend.
Historically high stock valuations may attract fresh attention when US companies post second-quarter results over the next several weeks. Wall Street expects a 2.9 percent dip in quarterly earnings, according to Thomson Reuters I/B/E/S.
Pointing to expectations of calmer trading, the CBOE Volatility index fell 16 percent on Monday. Its 29 percent decline in the past two sessions is the largest two-day drop since Jan. 2, 2013.
The Dow Jones industrial average rose 217.27 points, or 1.22 percent, to end at 17,977.68. The S&P 500 gained 22.98 points, or 1.11 percent, to 2,099.6 and the Nasdaq Composite added 73.82 points, or 1.48 percent, to 5,071.51.
All of 10 major S&P 500 sectors were higher, led by the technology index, up 1.62 percent. The financial index rose 1.09 percent. Upcoming quarterly earnings reports from banks are expected to benefit from a recent rise in long-term yields relative to short term yields.
European shares also rose on news of a new bailout for Greece after all-night talks in Brussels.
The euro zone’s Euro STOXX 50 index hit a two-week high and was up 1.8 percent by the close. The index has gained about 9 percent since last Tuesday’s close.
The pan-European FTSEurofirst 300 index rose 1.9 percent to 1,572.05 points. Germany’s DAX, France’s CAC and Britain’s FTSE 100 rose 1 to 1.9 percent.
The euro zone’s banking index advanced 2.1 percent, helped by gains for Societe Generale, Credit Agricole and UniCredit, the shares of which were up by 1.6 to 3 percent
The region’s volatility index, a crude indicator of investor concern, dropped 4.6 points to hit a two-week low.
Source: Buenos Aires Herald