NEW YORK — A new tentative agreement between Greece and its lenders helped lift the stock market on Monday, extending the market’s winning streak to a third day. The deal for a new loan package is aimed at keeping the country in the euro, but many hurdles remain.
Major indexes headed higher at the opening bell, following solid gains in Europe, then kept climbing throughout the afternoon. Nearly three stocks rose for every one that fell on the New York Stock Exchange, and every sector in the S&P 500 finished with gains.
Nine hours after a self-imposed deadline passed, European officials announced the breakthrough on Greece early Monday. The tentative agreement removed an immediate threat that the country would default on its debts and leave the euro. In exchange for a three-year loan program, the deal requires Greece’s parliament to pass tax increases and other key demands from its lenders into law by Wednesday.
“Our markets have reason to cheer,” said Tim Dreiling, senior portfolio manager at the U.S. Bank’s Private Client Reserve. “It’s a reprieve from worry for a few days at least.”
The Standard & Poor’s 500 index gained 22.98 points, or 1.1 percent, to 2,099.60. The Dow Jones industrial average climbed 217.27, or 1.2 percent, to 17,977.68, while the Nasdaq gained 73.82, or 1.5 percent, to 5,071.51.
Major markets in Europe rallied on the news. Germany’s DAX climbed 1.5 percent and France’s CAC 40 surged 1.9 percent. Britain’s FTSE 100 finished with a gain of 1 percent.
JPMorgan Chase, Johnson & Johnson and Wells Fargo will report earnings Tuesday, followed by Bank of America and Google later in the week.
