NEW YORK (TheStreet) -- U.S. stocks staged a huge rally Friday as investors cheered the progress being made at the latest Europe Union summit on concrete measures to address the region's debt crisis.

Trading was volatile across a swath of asset classes with gold jumping more than $50 to breach $1600 an ounce, oil making a convincing break back above $80 a barrel, bonds selling off sharply and the dollar tumbling more than 1% against a basket of foreign currencies.

The Dow Jones Industrial Average soared nearly 278 points, or 2.2%, to close at 12,880. The blue-chip index rose 1.9% for the week and finished June with a gain of nearly 4%. Despite a 2.5% decline in the calendar second quarter, the Dow is now up 5.4% so far in 2012.

The S&P 500 surged 33 points, or 2.5%, to finish at 1362, right at its high for the day. The benchmark index advanced 2% for the week, putting it up 4% for the month. Although the S&P 500 fell 3.3% during the quarter, it's appreciated 8.3% year-to-date.

The Nasdaq jumped close to 86 points, or 3%, to settle at 2935, logging its fourth-straight weekly gain. The index booked a 1.5% rise for the week and added 3.8% in June. For the year, the Nasdaq is up 12.7% but it lost 5% in the calendar second quarter.

The three major averages managed to record their first concurrent June gains since 2004.

Within the Dow, 29 of the 30 components finished higher, led by Bank of America ( BAC), Boeing ( BA), Cisco ( CSCO), General Electric ( GE), Hewlett-Packard ( HPQ), Intel ( INTC), and United Technologies ( UTX), all of which gained more than 3%.

JPMorgan Chase ( JPM) was the only blue chip to close in negative territory. The bank's stock dipped nominally, extending Thursday's decline after a media report said losses from its bad trade on credit derivatives could reach as high as $9 billion.

All ten large-cap sectors advanced with basic materials, capital goods, conglomerates, energy and technology clocking in as the strongest performing sectors.

Gainers outpaced losers by a ratio of more than 6-to-1 on the New York Exchange and more than 5-to-1 on the Nasdaq.

Europe's leaders agreed overnight to take action to reduce Italy and Spain's borrowing costs and relax rules on tapping into bailout funds to boost the troubled Spanish banking system. They also revealed a $149 billion economic growth plan for the eurozone.

"Several things did occur which are worth not dismissing outright," said Dan Greenhaus, chief global strategist at BTIG. But "as we have long said that the only 'real' means by which to end this crisis certainly involves a euro TARP (Troubled Asset Relief Program) style program; we are yet again a bit disappointed."

"The key issue," said Marty Leclerc, chief investment officer at Barrack Yard Advisors, is that "Europeans haven't decided what it ultimately means to live in euro-land, and in order for a euro-land to exist as a union, the politicians have to figure out a way of dealing with the imbalances that a union creates."

Jeffrey Sica, manager of SICA Wealth Management, said right now he maintains short positions in most U.S. equity indices on concerns of declines in stocks attributable to the interdependence between U.S. and European banks. However, "we will avoid increases in short positions on the U.S. equity market due to the likelihood that our central bank will use the promise of more liquidity to stabilize stock prices."

The FTSE in London settled higher by 1.42% and the DAX in Germany finished ahead by 4.33%. The Hong Kong Hang Seng index settled ahead by 2.19% and the Nikkei in Japan closed up 1.5%.

The U.S. Commerce Department reported Friday that personal income rose 0.2% in May, as expected by economists surveyed by Thomson Reuters, and matching April's tiny rise. Spending was essentially unchanged, also as expected, after a downwardly revised increase of 0.1% for April.

The personal saving rate was 3.9% in May, compared with 3.7% in April.

David Ader, a bond strategist with CRT, said that the flat read on spending for May and the downward revision for April points to a soft start to the quarter and will drive down GDP forecasts toward the mid-1% handles.

"Note, too, the rise in the savings rate even as disposable income gains, suggesting that lower gas prices are not generating spending confidence," he said.

In related economic news for Thursday, the final Thomson Reuters/University of Michigan index of consumer sentiment fell to the lowest level of the year at 73.2 in June. Economists, on average, had predicted that the index would decline to 74.1, matching the preliminary figure.

Separately, the Institute for Supply Management-Chicago said that its business barometer increased to 52.9 in June from 52.7 in May, above the read of 52.5 economists surveyed by Thomson Reuters were expecting. A reading above 50 indicates expansion in the regional economy.

A Goldman Sachs report said qualitative comments show that, compared to last month, more industries are reporting a slowdown in activity and or a cautious outlook; on the other hand, comments generally indicate a gradual slowdown as opposed to outright contraction.

"Unsurprisingly, the European crisis and the upcoming U.S. 'fiscal cliff' remain the key risks across sectors, weighing on business outlook and sentiment," the report said. "The housing market remains the one bright spot in the economy, as our homebuilders team continues to report positive trends, consistent with broad increases in recent home sales and house price reports."

August crude oil futures surged $7.27 to settle at $84.96 a barrel, while August gold futures soared $53.80 to settle at $1604.20 an ounce.

The benchmark 10-year Treasury shed 20/32, raising the yield to 1.654%, while the greenback made a major move, sliding back 1.33%, according to the dollar index.

In corporate news, Research In Motion ( RIMM) was a big mover to the downside after disappointing Wall Street Thursday with its fiscal first-quarter results.

The BlackBerry maker reported a much wider-than-anticipated loss , pushed back the launch of the BlackBerry 10 until the first calendar quarter of 2013 and announced plans to lay off 5,000 employees, roughly 30% of its work force. The stock finished down 19%.

Nike ( NKE) posted fiscal fourth-quarter earnings on Thursday that missed analysts' expectations. The sneaker maker reported a profit of $549 million, or $1.17 a share, on revenue of $6.47 billion for the three months ended in May; analysts were expecting earnings of $1.37 a share on revenue of $6.51 billion.

The company attributed the year-over-year decline in earnings to lower gross margin, higher SG&A spending, a higher effective tax rate and costs related to restructuring operations in western Europe. Shares lost more than 9% on the day.

Anheuser-Busch InBev ( BUD), the world's largest brewer, confirmed Friday that it would buy the rest of Mexican brewer Grupo Modelo that it doesn't already own for $20.1 billion. The stock gained nearly 8%.

Constellation Brands ( STZ) said it would buy the remaining 50% of Crown Imports that it doesn't already own from Anheuser-Busch for $1.85 billion following Anheuser-Busch's deal to buy Modelo.

Shares of Constellation, which also reported an above-consensus profit for its fiscal first quarter, rose more than 24%.


-- Written by Andrea Tse and Michael Baron in New York.

>To contact the writer of this article, click here: Andrea Tse.

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