The bulls took control on Thursday and never let go, putting the S&P 500 on track for its best monthly percentage gain since 1974.
An agreement out of Europe that will force banks and insurers to take a 50 percent loss on Greek debt sparked a rally on both sides of the Atlantic.
The threat of Europe's debt crisis spreading is now less likely thanks to the framework set up by European leaders, explains Ben Willis, director of floor operations at Sunrise Securities.
SOUNDBITE: BEN WILLIS, DIRECTOR OF FLOOR OPERATIONS, SUNRISE SECURITIES (ENGLISH):
"We're saying ok, we like what you're giving us. We do expect more to come, but what you're telling us right now, we will take and put our money back to work in the stock market."
Further bolstering sentiment - the fastest U.S. economic growth in a year. Gross Domestic Product during the third quarter grew at a 2-1/2 percent annual rate, as expected.
Meanwhile, weekly unemployment claims saw another small drop last week.
SOUNDBITE: BEN WILLIS, DIRECTOR OF FLOOR OPERATIONS, SUNRISE SECURITIES (ENGLISH):
"There was a time not too long ago that we were concerned about a double-dip recession, those were one of the key underlying factors that were holding the market down. We're starting to get other indicators in the marketplace that suggest that's not going to happen.
Earnings also helped the tone. Exxon Mobil, the world's largest publicly traded company, pocketed $10.3 billion last quarter thanks to higher oil prices.
Looking at the final numbers: The Dow gained 2.9 percent, the S&P 500 surged 3.4 percent, and the Nasdaq jumped 3.3 percent.
Other markets like gold and oil also rallied sharply with the dark cloud of a European debt crisis lifted.
In Europe, equity prices were up 5.4 percent in Germany, 6.3 percent in France and roughly 3 percent in the U.K.
Conway Gittens, Reuters
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