The Dow rallies 277 points, one of its biggest gains of the year.
Specialist Douglas Johnson, left, and trader Michael Urkonis work on the floor of the New York Stock Exchange. U.S. stocks rallied today after European leaders agreed to a set of prescriptions aimed at easing their debt crisis.The Dow Jones industrial average climbed 277 points, one of its biggest gains this year, and stocks advanced even further in Europe, in strong and weak countries alike.
The price of oil posted the biggest one-day increase in more than three years, and other commodities shot higher — signs of hope that a deal in Europe might remove a big barrier to a healthier world economy.
In Brussels, leaders of the 17 countries that use the euro appeared finally to have found a broad strategy to fight a debt crisis that has hounded European governments and world investors for three years.
The leaders agreed to pump money directly into stricken banks, let some countries tap into rescue money without submitting to stringent budget requirements and, later, tie European governments closer in economic union.
David Kelly, chief global strategist at JPMorgan Funds, said it was becoming clear that European leaders will compromise to solve the crisis. One of the biggest stock gains Friday came in Germany, which took a hard line in earlier negotiations.
“The whole language is positive here,” he said. “Every time they’ve stared over the cliff into the abyss of a euro breakup, they’ve realized it’s much wiser to get closer together.”