Investing.com - U.S. stocks spiked higher at the open as optimism over the European Summits progress to manage the debt crisis swept the equity markets.
At the open, the Dow jumped 1.52%,the S&P 500 soared 1.60%, while the tech heavy Nasdaq surged 1.74%.
Bullish equity sentiment was ignited after euro zone leaders agreed earlier that the region's rescue funds could be used to stabilise bond markets without forcing countries that comply with European Union budget rules to adopt extra austerity measures or economic reforms.
The leaders also agreed that the bloc's future permanent bailout fund, the European Stability Mechanism (ESM), would be able to recapitalize banks without increasing a country's budget deficit.
In addition, EU officials approved a EUR120 billion plan to promote growth in the single currency bloc that includes a capital boost for the European Investment Bank.
In the U.S., official data showed that personal spending was flat in May, disappointing expectations for a 0.1% rise and remaining at its weakest level in six months.
The financial sector was expected to be active, following a surge in European lenders. Citigroup shares jumped 3.83% in pre-market trade, while Bank of America rallied 3.36%.
Meanwhile, JP Morgan climbed 2.90% in early trading, although the Wall Street Journal reported earlier that internal controls have come under increased scrutiny by regulators who asked the bank to prove that its risk models are working properly.
Tech stocks were also likely to be in focus, after Blackberry maker Research In Motion announced it was going to cut 5,000 jobs and was delaying the launch of its BB10 smartphone until early 2013 as first quarter earnings showed that revenue had fallen 43% in the first three months of 2012. Shares dove 13.91% in pre-market trade.
Google shares advanced 1.32% on the other hand, as the stock remained strongly supported by this week's announcement of the company's first tablet, due to be launched during the summer.
Elsewhere, Nike shares gave back 10.13% in early trading, after the sporting goods giant said profits fell in the fourth quarter; citing spiraling costs which dwarfed an increase in sales of 12%. In bearish news, U.S. UoM consumer sentiment fell unexpectedly last month, data showed on Friday.
In a report, the University of Michigan said that consumer sentiment fell to a seasonally adjusted 73.2, from 74.1 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 74.1 last month.
Across the Atlantic, European stocks traded sharply higher with the EURO STOXX 50 soared 4.03%, France’s CAC 40 rallied 3.81%, Germany's DAX surged 3.63%, while Britain's FTSE 100 jumped 2.07%.
Also Friday, data showed that the price of goods and services purchased by consumers in the U.S., excluding food and energy, rose less-than-expected by 0,1%, following a 0,1% rise in April.
Meanwhile, EU leaders were to hold a second day of talks in Brussels.
At the open, the Dow jumped 1.52%,the S&P 500 soared 1.60%, while the tech heavy Nasdaq surged 1.74%.
Bullish equity sentiment was ignited after euro zone leaders agreed earlier that the region's rescue funds could be used to stabilise bond markets without forcing countries that comply with European Union budget rules to adopt extra austerity measures or economic reforms.
The leaders also agreed that the bloc's future permanent bailout fund, the European Stability Mechanism (ESM), would be able to recapitalize banks without increasing a country's budget deficit.
In addition, EU officials approved a EUR120 billion plan to promote growth in the single currency bloc that includes a capital boost for the European Investment Bank.
In the U.S., official data showed that personal spending was flat in May, disappointing expectations for a 0.1% rise and remaining at its weakest level in six months.
The financial sector was expected to be active, following a surge in European lenders. Citigroup shares jumped 3.83% in pre-market trade, while Bank of America rallied 3.36%.
Meanwhile, JP Morgan climbed 2.90% in early trading, although the Wall Street Journal reported earlier that internal controls have come under increased scrutiny by regulators who asked the bank to prove that its risk models are working properly.
Tech stocks were also likely to be in focus, after Blackberry maker Research In Motion announced it was going to cut 5,000 jobs and was delaying the launch of its BB10 smartphone until early 2013 as first quarter earnings showed that revenue had fallen 43% in the first three months of 2012. Shares dove 13.91% in pre-market trade.
Google shares advanced 1.32% on the other hand, as the stock remained strongly supported by this week's announcement of the company's first tablet, due to be launched during the summer.
Elsewhere, Nike shares gave back 10.13% in early trading, after the sporting goods giant said profits fell in the fourth quarter; citing spiraling costs which dwarfed an increase in sales of 12%. In bearish news, U.S. UoM consumer sentiment fell unexpectedly last month, data showed on Friday.
In a report, the University of Michigan said that consumer sentiment fell to a seasonally adjusted 73.2, from 74.1 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 74.1 last month.
Across the Atlantic, European stocks traded sharply higher with the EURO STOXX 50 soared 4.03%, France’s CAC 40 rallied 3.81%, Germany's DAX surged 3.63%, while Britain's FTSE 100 jumped 2.07%.
Also Friday, data showed that the price of goods and services purchased by consumers in the U.S., excluding food and energy, rose less-than-expected by 0,1%, following a 0,1% rise in April.
Meanwhile, EU leaders were to hold a second day of talks in Brussels.