Dow, S&P 500 close at record highs after Greek deal

Stocks jumped Friday as the Dow and S&P 500 shot up to record closing highs on word that Greece and its eurozone creditors have officially reached an extension agreement on a debt deal.

At a televised press conference in Brussels, it was announced that creditors will extend Greece's bailout for four months, less than the six months Athens' new government initially sought. But the deal, at least for now, means Greece will have cash to pay its bills and will remain in the 19-nation eurozone.

The agreement reduces market uncertainty, and takes off the table worst-case outcomes, such as a Greek default, a so-called "Grexit" from the eurozone, and financial contagion.

The Dow Jones industrial average surged 154.67 points, or 0.9%, to an all-time closing high of 18,140.44. It was the first record close in 2015 for the blue-chip index.

The Standard & Poor's 500 index gained 12.85 points, or 0.6%, to a record close of 2110.30. It was the S&P's third record close of the year.

The Nasdaq composite rose 31.27 points, or 0.6%, to 4955.97, putting it at fresh 15-year highs.

The financial rescue package struck today by Europe's finance ministers and Greece, however, is conditional. By Monday, Greece must detail the reforms and budgetary moves it plans on implementing, and its Eurogroup creditors must accept those terms.

"We agreed on four months under conditions," Austrian Finance Minister Hans Joerg Schelling told reporters at a press conference after the meeting. Greece must submit a list on Monday of measures that it will undertake in return and "the institutions check whether the list is sufficient," he said.

Greek's current bailout was set to end at the end of the month. The four-month loan extension will keep the bailout funds flowing to Greece and give both sides time to work out a longer-term solution to the money crunch faced by Athens.

Things have been heating up once again in Greece, as the eurozone's biggest debtor and its new left-wing, anti-austerity government have been trying to wring concessions from Germany, the eurozone's biggest lender.

The high-stakes negotiations and political posturing went right down to the wire. Earlier today, it was still unclear if Germany would agree to a deal.

"I think they've now reached a point where they will tell Greece, 'If you really want to leave, leave,'" Malta's Finance Minister Edward Scicluna said of eurozone officials.

Overseas, European markets were mostly higher. Germany's DAX index gained 0.4% to 11,050.64 and Britain's FTSE added 0.4% to 6915.20. France's CAC 40 slipped 0.1% to 4830.90. Japan's Nikkei 225 gained 0.4% to close at 18,332.30.