US stocks advanced in early trade on Tuesday as speculation that the European Union authorities will agree on a fresh bailout for debt-laden Greece buoyed sentiment.
The S&P 500 Index gained 12.38 points, or 0.93 percent, to trade at 1,343.47 at 9:40 a.m. EDT. The Dow Jones Industrial Average advanced 124.96 points, or 1 percent, to trade at 12,566.54. The Nasdaq Composite Index gained 1.04 percent.
A report in The Wall Street Journal suggested that Germany is considering making concessions that would lead to a new bailout for Greece, a year after the debt struck nation received its first bailout. News that a second bailout was closer appeared to ease the concerns of investors.
Without a second bailout, Greece looks set to run out of money in less than two months if it carries on with current spending levels. It has been suggested that a Greek default could be Lehman Brothers 2 in terms of its impact on the global economy and financial sector.
On the economic front, the S&P/CaseShiller house price index declined 0.2 percent in March from February on a seasonally adjusted basis, which was in line with expectations..
On the corporate front, Nvidia Corp. (NASDAQ:NVDA) shares advanced 1.95 percent to $19.86 in early trade after the company stock was upgraded to “buy” rating “hold rating at Auriga USA LLC.
Analog Devices Inc. (NYSE:ADI) shares advanced 1.13 percent to $41.01. Bank of America Merrill Lynch upgraded its rating on shares of ADI to “buy” and raised its price target to $47.
The euro advanced 0.91 percent to 1.4413 against the dollar and the yen declined 0.83 percent against the greenback.
Crude oil futures surged 2.42 percent to $103.02/barrel and gold futures advanced 0.08 percent.
European stock markets are currently trading higher with FTSE 100 up by 61.70 points, DAX30 up by 143.95 points and CAC 40 up by 67.37 points.