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Stocks rally from early losses to close higher
Photo
Trader Michael Zicchinolfi , second from left, works on the floor of the New York Stock Exchange on Wednesday.
Associated Press
NEW YORK
Stocks staged an afternoon-long rally and closed higher Wednesday as Greece appeared to close in on the cost-cutting deal it needs to keep from defaulting on its national debt.
The Dow Jones industrial average gained 5.75 points to close at 12,883.95 after falling as much as 60 points at midday. It was the Dow’s highest close since May 19, 2008, the last time it finished above 13,000.
The Standard & Poor’s 500 index edged up 2.91 points to 1,349.96. The Nasdaq composite rose 11.78 points to 2,915.86, its highest close since December 2000.
After three days of delays, Greek government leaders met in Athens to go over a deal on steep cuts in public spending demanded by the country’s lenders. European leaders will meet today in Brussels to discuss a $170 billion bailout for Greece.
Investors are worried that Greece will default on its debt next month, which could roil financial markets and cause major losses for banks and other investors that hold Greek debt.
Several deadlines have passed without an agreement.
Stock trading has been relatively quiet this week after a slow but steady rise since the beginning of the year.
The Dow has added 2 percent in February and is up 5.5 percent for the year.