Stocks logged their best day in two months Friday as Greece appeared to move closer to securing a bailout deal that will enable it to avoid bankruptcy and keep the country in the euro.
Greece and its creditors appeared to be narrowing their differences after Athens offered reform proposals in order to secure a third bailout of around 53 billion euros, or $59.5 billion. A final decision could be made on Sunday.
A second day of gains for Chinese stocks also encouraged investors. U.S. stocks had fallen sharply Wednesday in part on concern that a monthlong slump in China’s stock market could crimp growth in the world’s second-largest economy.
The Standard & Poor’s 500 index rose 25.31, or 1.2 percent, to 2,076.62. The Dow Jones industrial average rose 211.79, or 1.2 percent, to 17,760.41. The Nasdaq composite rose 75.30, or 1.5 percent, to 4,997.70.
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The gains pushed the S&P 500 back into positive territory for the year.
On Friday, stocks in China jumped before the U.S. market opened. China’s Shanghai Composite Index jumped 4.5 percent, paring its losses for the month to 24 percent. The Chinese market is only recovering after the government intervened heavily and about half of the companies listed in mainland China suspended trading in their stocks.
That’s making some investors cautious.
“The policymakers appear to have some success in stabilizing values, but 50 percent of Chinese stocks are not currently trading,” said Jim McDonald, chief investment strategist at Northern Trust.