U.S. stocks jump on optimism for a Greece accord

U.S. stocks rose sharply, cutting weekly losses, with investors hopeful that Greece's latest pitch to its creditors would lead to a financial rescue for the country.

In Athens, the Greek parliament was set to consider the government's proposal for a rescue loan, with the plan including spending reductions and reforms much like those suggested by creditors in June.

Wall Street's gains follow rallies among European and Asian shares, with a two-session surge in Chinese stocks helping lift investor confidence.

"It's looking like Greece may be caving to creditors -- once we get risk off the table, that helps. And China is more stable," Nick Raich, CEO at the Earnings Scout.

Stocks held the bulk of their gains after Federal Reserve Chair Janet Yellen said she still expects the central bank will increase interest rates in 2015.

The Dow Jones Industrial Average (DJI) rose 212 points, or 1.2 percent, at 17,760.

The S&P 500 (SPX) rose 25 points, or 1.2 percent, to 2,077. The Nasdaq Composite (COMP) jumped 75 points, or 1.5 percent, to 4,998.

With Wall Street's focus largely overseas, U.S. economic data and the Federal Reserve's monetary policy have taken a backseat.

"The Fed can talk [positively about the economy], but their actions show the data are not as good as they thought, otherwise they would have raised interest rates by now," Raich said.

Quarterly earnings pick up next week, with major banks including JPMorgan Chase (JPM) and Wells Fargo (WFC) reporting, along with chip manufacturer Intel (INTC).

"To have a sustainable rally, we need to see top-line sales beating expectations," Raich said.