US stocks finished higher for the third straight session after Greece and its international creditors agreed on the country’s third bailout deal averting a potential ‘Grexit’ from the common currency.
The Dow Jones Industrial Average ended 212.7 points or 1.2% higher at 17,977.8 points, the second straight day it had recorded a growth by more than 200 points. All but one of the blue chip index’s components ended higher.
The benchmark S&P 500 index climbed 22.98 points or 1.1% to end at 2099.60 with all ten of its key sectors ending higher.
The technology heavy Nasdaq Composite ended 73.82 points or 1.5% higher at 5,071.71 points.
“Headlines out of Greece are going to dissipate a bit and with that the U.S. earnings picture is going to start to emerge as the important factor,” Mike Binger, a portfolio manager at Gradient Investments in Shoreview, Minnesota, with $850 million under management, told Reuters.
Greece bagged a conditional agreement to receive potentially up to $95 billion in the next three years to cover its debts along deliberations to bridge the gap in funds until the bailout is sealed.
The bailout deal is however dependent on the Country reenacting reforms on pension and budget cuts and value added tax within a very short timetable.
“It’s great hearing Greece is not going over the deep end, at least not this week,” Rob Lutts, chief investment officer at Salem, Massachusetts-based Cabot Wealth Management Inc., told Bloomberg by phone.
“Last week’s volatility was all on the back of what’s going on in Greece, as well as in China, and today it’s pretty apparent the path is one of resolution.”
Also adding to the market strength was the continued resurgence of Chinese stocks. The benchmark Shanghai Composite climbed for the third straight day capping its biggest three dance advance in more than a year on measures by Beijing to halt market gyrations in the country.
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