Positive news from overseas Greece-d Wall Street’s wheels on Friday, as traders cheered a possible resolution for the Greek economic crisis and a rebound in Chinese stocks.
The Dow climbed 212 points, or 1.2% to close at 17, 760. The S&P 500 and Nasdaq also rose more than 1%.
“You had positive news flow, whether it was China or Greece,” Todd Salamone, senior vice president of research at Schaeffer’s Investment Research, told the Daily News.
The market reacted favorably to a proposal submitted by Greece on Thursday that makes substantial concessions to the country’s lenders.
The proposal includes raising taxes and eliminating some tax breaks. In exchange, Greece is looking to get $59 billion to cover its debts. On Friday, Greek Prime Minister Alexis Tsipras appealed to his party to back his reform package to save Greece from a financial meltdown.
Euro zone finance ministers are set to meet on Saturday to consider the plan and determine whether Athens will get a bailout.
Wall Street also got a lift from China, where stocks rallied strongly for the second day in a row thanks to government support measures. As of mid-week, panic selling in China had slashed one-third of the market’s value since its peak in June.
“There is optimism that Greece is opening up to accepting a deal which would let it stay in the EU. But to me, the fact that China staged a late week bounce is more meaningful,” Ryan Detrick, strategist at See It Market, told the News. “With both of these worries calming, it allowed the bulls to take charge.”
But investors could be in for a bumpy ride as the U.S. stock market is expected to continue to respond to headlines from overseas, Salamone said.
“Unfortunately, we don’t know what that news will be,” he said.
On the domestic front, Federal Reserve chair Janet Yellen said on Friday that she expects the Fed to raise rates this year. But she also noted that the U.S. labor markets remain weak and that more workers could be brought back into the workforce with stronger economic growth.