The Dow has gained more than 300 points as US stocks rallied on higher oil prices and greater optimism over a deal to renegotiate Greece’s debt.
The Dow Jones Industrial Average jumped 305.36 points (1.76 per cent) on Tuesday to 17,666.40.
The broad-based S&P 500 powered higher by 29.18 (1.44 per cent) to 2,050.03, while the tech-rich Nasdaq Composite Index gained 51.05 (1.09 per cent) at 4,727.74.
US oil prices surged seven per cent to the highest level of the year, adding some relief to markets that fear the steep drop in the commodity signals major global economic problems.
Greek officials are pushing the idea of debt swaps that would avoid the need for creditors to accept ‘haircuts’ on the country’s 315 billion euros ($A463.85 billion) foreign debt.
European equities jumped on hopes of a resolution.
Despite the market’s sunny performance, some analysts were sceptical investors had banished fears about deflation in the eurozone and weak global growth.
“It’s good to enjoy the rally while we can,” said Mace Blicksilver, director of Marblehead Asset Management.
“But a lot of things that worry the market are still ahead of us.”
Petroleum-linked stocks gained. Dow member Chevron surged 3.3 per cent, while independent producer EOG Resources advanced 4.1 per cent and oil-services giant Schlumberger rose 2.9 per cent.
Large banks rose. Dow member JPMorgan Chase gained 2.3 per cent, Bank of America rose 2.8 per cent and Citigroup added 2.4 per cent.
Twitter gained 6.2 per cent after unveiling a new “promoted tweets” service to allow advertisers to reach people who are not on Twitter itself.
Staples soared 10.9 per cent following a report in The Wall Street Journal that it is in advanced talks to combine with Office Depot. Office Depot bolted 21.5 per cent higher.
General Motors gained 2.6 per cent and Ford Motor tacked on 2.5 per cent as both companies reported large jumps in US auto sales in January.
Bond prices fell. The yield on the 10-year US Treasury rose to 1.78 per cent from 1.67 per cent Monday, while the 30-year advanced to 2.37 per cent from 2.25 per cent. Bond prices and yields move inversely.
