US stocks edged higher, pushing the S&P 500 above 2,100 to a record intraday high amid growing optimism that a debt deal would be reached with Greece.
Sources believe that Greece intends to ask for an extension of a loan agreement tomorrow. The report follows the collapse of deal negotiations on Monday, which led to the European Union finance ministers pressuring the country to remain in an international financial rescue program.
Greece’s loan extension deal will prevent the current loan agreement from expiring at the end of the month, easing fears among investors that the country might leave the eurozone and set off financial instability across Europe.
Brian Fenske, head of sales trading at ITG was quoted by The Wall Street Journal as having said, “The consensus is that there are going to be no surprises and it’s going to work itself out by the deadline. The markets are getting better at shrugging it off.
According to Reuters, the S&P 500 climbed 0.99% or 1.94 points to 2,098.93, reversing an earlier loss and putting the benchmark on track for a second straight all-time high.
The Nasdaq Composite Index gained 0.02% or 0.74 points to 4,894.57 while the Dow Jones Industrial Average added 0.09% or 15.55 points to 18,034.9.
Shares of small companies, seen as better insulated from troubles overseas, gained. The Russell 2000 index of small shares gained two points to 1,225.
Investors have been monitoring developments in Greece since the election victory of an antiausterity party earlier this year. Most investors believe that Greece will reach a deal that will keep the eurozone intact.
Quincy Krosby, market strategist at Prudential Financial said, “It’s apparent that investor believe that somehow they will come up with a compromise. Just the idea that they continue talking would be a positive for the market.”
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