NEW YORK (AFP) – US stocks rallied as markets opened Thursday amid signs that Athens would implement a painful austerity plan and that German banks would join a rescue effort to prevent a Greek default.
The Dow Jones Industrial average gained 99.48 points (0.81 percent) to stand at 12,360.90 in the first half-hour of trading.
The broader SP 500 rose 8.21 points (0.63 percent) to 1,315.62, while the tech-heavy Nasdaq Composite climbed 20.50 points (0.75 percent) to 2,760.99.
Traders were keeping a close eye on Greece, where lawmakers secured enough votes to pass a bill implementing a painful 28-billion-euro ($41-billion) austerity plan demanded by international creditors.
Further fueling hopes that Europe would defuse its debt crisis, the German government announced that German banks had agreed to participate in a second rescue package for Athens by rolling over some of their Greek bonds.
“Greece appears to be on course to receive a second bailout package,” said
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