The Dow Jones industrial average jumped back above 10,000 Tuesday on hope the European Union will help Greece manage its growing debt.
European debt problems are the latest obstacle for investors who have put the market's 10- month rally on hold. Stocks began retreating in mid-January after China said it would try to control its economy to avoid speculative bubbles. Things got worse when President Barack Obama announced plans to curb trading by large financial institutions.
"There's some euphoria that maybe it's not going to be blowing up," said Erik Davidson, managing director of investments for Wells Fargo Private Bank in Carmel, Calif., referring to easing fears over Greece.
The Dow also got a boost from Morgan Stanley's upgrade to shares of Caterpillar Inc. It was Morgan's first upbeat take on the stock in three years. A cautious forecast from the equipment maker hurt stocks late last month.
The Dow rose 150.25 points, or 1.5 percent, to 10,058.64, its steepest percentage gain since Nov. 9. TheStandard & Poor's 500 index rose 13.78, or 1.3 percent, to 1,070.52. The Nasdaq composite index rose 24.82, or 1.2 percent, to 2,150.87.
Stocks have become more volatile as concerns grow about the strength and sustainability of a global economic recovery. The Dow, which fell almost 104 points Monday, has posted triple-digit moves in 11 of the last 17 trading days. - AP