NEW YORK — The Dow Jones industrial average jumped back above 10,000 Tuesday on hope that a resolution was near for Greece’s debt crisis.
The Dow rose 150 points, a day after closing below 10,000 for the first time in three months. The major indexes all gained more than 1 percent. Treasury prices slid as demand for safer investments fell.
Global markets bounced back on reports that plans are being developed in the European Union to rescue Greece. That raised hopes that policymakers will take bigger steps to contain debt troubles in other weak European economies, including Portugal and Spain.
Though Greece’s economy is small, that country’s yawning budget gaps were undermining faith in the euro, Europe’s common currency.
Investors also believed that other countries might have trouble raising money in debt markets, which would hamper efforts to get their economies going again.
The Dow rose 150.25, or 1.5 percent, to 10,058.64, its steepest percentage gain since Nov. 9. The broader Standard & Poor’s 500 index rose 13.78, or 1.3 percent, to 1,070.52, while the Nasdaq composite index rose 24.82, or 1.2 percent, to 2,150.87.
World stock markets have been tumbling in recent weeks on concerns that debt problems would spread. The euro is still down about 5 percent for the year but rose for a second day against the dollar as the outlook improved for Greece.
Greece took steps Tuesday to calm markets, pledging to slash spending and raise fuel taxes.
Asian stock markets mostly rose today. Japan’s Nikkei stock benchmark gained nearly 1 percent as the dollar rose against the yen, boosting exporters, while oil prices fell after surging to near $74 a barrel Tuesday. The dollar rose against the euro.
“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 Greece.
Davidson said some of the market’s slide had been over concern that stocks had risen too far. The problems in Greece provided a handy excuse to sell, he said.
The Dow also got a boost from Morgan Stanley’s upgrade to shares of Caterpillar.
