Stocks rallied on Friday, finishing the week higher after European Union leaders agreed on a plan to toughen the region's budget rules to help restore market confidence after a two-year sovereign debt crisis.

Based on the latest available data, the Dow Jones industrial average <.DJI> was up 186.41 points, or 1.55 percent, at 12,184.11. The Standard & Poor's 500 Index <.SPX> was up 20.83 points, or 1.69 percent, at 1,255.18. The Nasdaq Composite Index <.IXIC> was up 50.47 points, or 1.94 percent, at 2,646.85.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)