US stocks pared some of their early morning gains but still traded modestly higher on renewed hope on Greece after the Greek government pitched a fresh bailout proposal to the European Union and fresh economic data showed strength in the labor market.
The Dow Jones Industrial Average most recently added 86.45 points or 0.49% at 17,704.16 points after registering an intrasession high of 17,802 points.
The S&P 500 index most recently grew by 9.07 points or 0.44% at 2,072.18 while the Nasdaq Composite added 9.32 points or 0.19% at 4,996.18.
“We’re not getting a lot of company news right now that might shift this focus away from some of these political headlines,” Jack Caffrey, equity portfolio manager at J.P. Morgan Private Bank, told the Wall Street Journal.
US stocks rose sharply immediately after the bell in morning trading after reports emerged that Greece Prime Minister, Alex Tsipras, was ready to accept nearly all the terms of the bailout proposal by the European Union with some conditions.
Tsipras reportedly sent a letter to the European Union outlining the country’s conditions for accepting a fresh bailout deal barely a day after the country defaulted on its 1.6 billion euro loan from the International Monetary Fund.
Market sentiment was however slightly tempered by suggestions by some of the European Union Officials that some countries would find it hard to accept the conditions.
“Investors are taking a collective sigh of relief that an armageddon type of scenario did not occur with respect to Greece,” Adam Sarhan, chief executive of Sarhan Capital in New York, told Reuters.
“The markets are also rallying from deeply oversold level.”
Also aiding the rally was data from the US Labor Department that reported that US private employers added a higher than expected 237,000 jobs in June, the largest since December.
The stronger than expected jobs data reignited hopes that the Federal Reserve would hike the interest rates later this year.
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