Global stocks up on ECB, Greece hopes

US stocks rallied for a second day on Thursday as Greece backed away from a proposed referendum that threatened its membership in the euro, which could destabilize global markets.

The Dow Jones industrial average was up 208.43 points, or 1.76 percent, at 12,044.47. The Standard & Poor's 500 Index was up 23.25 points, or 1.88 percent, at 1,261.15. The Nasdaq Composite Index was up 57.99 points, or 2.20 percent, at 2,697.97.

European shares rose strongly, boosted by the European Central Bank cutting interest rates and optimism that Greece will scrap plans for a referendum on its bailout package, easing worries it may leave the euro.

The FTSEurofirst 300 index of top European shares rose 1.9 percent to close at 990.11 points.

Earlier, Japan's Nikkei closed down 2.2 percent.