Europe deal pumps Dow up 277

Financial markets around the world stormed higher Friday after European leaders came up with a breakthrough plan to rescue banks, relieve debt-burdened governments and restore investor confidence.

The Dow Jones industrial average climbed 277 points, its second-biggest gain this year, and stocks advanced even further in Europe, in strong and weak countries alike.

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.

The Dow Jones industrial average closed up 2.20 percent, at 12,880.09. For the year, the Dow is up 5.4 percent. The Standard & Poor's 500 index soared 2.49 percent to 1,362.16. The rally left the S&P with a gain of 8.3 percent at the halfway mark for the year; the Nasdaq composite index is up 12.7 percent. It rose 3.00 percent Friday to 2,935.05. -- AP