U.S. stocks continued to surge Friday morning for a second day in a row as investor sentiment turned rosy following hope that a deal would be reached to avert a Greek exit from the eurozone and after a second day of recovery for Chinese stocks. U.S. Federal Reserve Chair Janet Yellen will give a speech Friday in which traders will look for any shift in sentiment over when the U.S. might begin to raise rates in light of this week’s developments in Asia and Europe.
The Dow (INDEXDJX:.DJI) jumped 186.74 points, or 1.06 percent, to 17,735.36. The S&P 500 index (INDEXSP:.INX) added 22.97 points, or 1.12 percent, to 2,074.33. And the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) gained 65.81 points, or 1.34 percent, to 4,988.30.
"This has been a week where everyone worried about China and Greece and as we go into the weekend those big financial headwinds are less scary," David Kelly, chief global strategist at JPMorgan Funds, told CNBC on Friday morning.
All 10 S&P 500 sectors traded higher, led by gains in telecommunications stocks.
Chinese stocks jumped 4.6 percent Friday, reversing a steep sell-off earlier in the week. Though the second-day rally boosted confidence in Europe and the U.S., analysts are warning that the rebound could be temporary.
“[Now is a] good opportunity for those who haven't sold already to get out because there's a lot more to fall," Jim Rickards, chief global strategist at West Shore Funds, told CNBC's "The Rundown" Friday.
Friday U.S. stock movers include Costco Wholesale Corporation (NYSE:COST), which gained over 2 percent in morning trading to $142.67 after Oppenheimer joined Piper Jaffray in a bullish outlook for the Issaquah, Washington, subscription warehouse retailer. San Francisco-based clothing retail chain Gap Inc. (NYSE:GPS) was trading down more than 1 percent to $37.25 after reporting sluggish June sales.
Media and technology firm Comcast Corporation (NASDAQ:CMCSA) was up over 1 percent to $62.88 as its highly anticipated film “Minions” opens in theaters ahead of the weekend. Facebook Inc. (NASDAQ:FB) was up over 1 percent to $87.24 after the Silicon Valley social networking giant said it was negotiating with major recording labels to feed music videos into Facebook user feeds.
Meanwhile, the Greek parliament is voting Friday to approve a bailout proposal that would trade steep austerity measures for a third bailout, which would avert – for now – an imminent exit of the eurozone’s weakest debt-ridden economy.
U.S. Fed Chair Yellen will speak at 12:30 EDT on Friday. Investors will look to see if this week’s tumult in Asian equities and the Greek situation will have any impact on when the U.S. will begin to raise rates.