US stocks rise on hopes of Greek debt deal

US stocks finished higher Thursday, led by a 1.2 percent gain in the Nasdaq, buoyed by reports that Greece had achieved the minimum support needed to push its huge private-debt writeoff through. The Dow Jones Industrial Average finished up 70.61 points (0.55 percent) at 12,907.94. The broad-based S&P 500 added 13.28 (0.98 percent) to 1,365.91, while the tech-rich Nasdaq Composite rose 34.73 points (1.18 percent) to 2,970.42. While an official statement was still awaited, a Greek government source said that enough private creditors had agreed to the debt swap program ahead of the 2000 GMT Thursday deadline to allow it to go ahead, opening the door to a broader new rescue of the teetering Greek economy. Confidence in the deal had boosted European stocks earlier, with the blue-chip Euro Stoxx 50 index jumping 2.17 percent. "That deal should also seal the final approval on a new bailout package from Greece's European partners," said Paul Christopher of Wells Fargo Advisors. But, he warned, markets should remain cautious. "Greece's economy is still in a steep contraction and Athens likely will need a third bailout." The US markets appeared unbothered by a rise in US weekly jobless claims, since the pickup did not change the overall picture of an improving jobs market in the country. Shares in government-rescued insurer American International Group fell by 3.9 percent to $28.53 after the US Treasury sold a 10.9 percent stake in the company at $29 a share. Half of the 206 million shares went to AIG itself. McDonald's lost 3.2 percent after it reported global revenue grew more slowly than expected in February, in part due to the deep freeze across Europe that month and the timing of the Chinese Lunar New Year. JPMorgan Chase was up 1.2 percent, after falling sharply earlier in the week on concerns it could be affected by a bad outcome of the Greek deal. Wells Fargo also racked up a solid 3.3 percent gain. Apple shares were up 2.1 percent a day after the company announced a new iPad version with a better screen and 4G wireless capability. Bond prices slid. The yield on the 10-year Treasury rose to 2.01 percent from 1.97 percent Wednesday, while the 30-year increased to 3.17 percent from 3.12 percent. Bond prices and yields move in opposite directions.