The Dow Jones industrial average jumped back above 10,000 before the closing bell on word that European Central Bank president Jean-Claude Trichet would return early from Australia to meet with European Union leaders. Trichet is expected to address developing plans to help Greece manage its growing debt.
The Dow closed Tuesday up 150.25, or 1.52%, at 10,058.64. The S&P 500 gained 13.78, or 1.30%. The Nasdaq Composite closed 24.82 points higher at 2,150.87.
Stock tumbled in earlier sessions because of concerns that trouble with Greece’s economy could spill into other countries. Greece took its latest steps to calm markets Tuesday, pledging to increase retirement ages, raise fuel taxes and accelerate reforms.
“It is a huge sigh of relief,” said Peter Kenny, managing director at Knight Capital Group. “As crazy as it sounds, it does seem like the central bank of Europe is going to tackle the issues and force the member nations to come to terms with fiscal austerity and discipline.”
A strike over the government’s new austerity measures is still expected to proceed on Wednesday. European Union officials are also expected meet once more Thursday to talk about ways to speed up economic growth.