A deal to forge stronger ties among most of Europe's economies sent stocks sharply higher Friday as hopes grew that the region was close to resolving its debt crisis.
The Dow closed up 186.56 points, or 1.6 percent, at 12,184.26. It is up 1.4 percent for the week.
Bank stocks led the market higher, reflecting traders' optimism about Europe's progress toward solving its crisis. Citigroup Inc. rose 3.7 percent, Morgan Stanley 3.2 percent and JPMorgan Chase & Co. 3 percent.