US stocks jumped, with the S&P and the Dow Jones Industrial Average recording their biggest one day gains in more than a month, on renewed optimism that Greece was nearing a deal with its international creditors.
The Dow Jones Industrial average surged 236.6 points or 1.3% to 18,000.40 points to turn positive for the year.
The S&P 500 index jumped 25.12 points or 1.2% at 2,105.20 points, its biggest one day gain in more than a month.
All ten of the benchmark index’s main sectors were positive for the day led by gains in technology and financial sectors.
The technology heavy Nasdaq Composite jumped 62.82 points or 1.3% at 5076.69 points bolstered by the solid showing by technology stocks.
“The market rally is mostly due to a combination of three things: the S&P 500 held its support level on Tuesday, the dollar weakened and oil rallied as well as some positive news from Greece,” Peter Cardillo, chief market economist at Rockwell Global Capital, told Market Watch.
Optimism towards a potential Greece deal with its creditors improved when people privy to the talks stated that Germany Chancellor Angela Merkel would be content with Greece committing to at least one of the economic reform reforms suggested by the creditors to release more bailout cash.
The European Central bank was also said to have raised the amount of emergency money available to the Banks in Greece.
“The Germans have officially blinked and off we go,” Michael Block, chief equity strategist at Rhino Trading Partners LLC in New York, told Bloomberg.
“U.S. data has been better in general, but more people are coming around to the fact the Fed is seeing all this volatility in the bond market and is afraid to raise rates, there isn’t too much tumult, oil has stabilized and so we move on.”
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