US stocks powered higher Friday as the latest bailout proposal from Greece lifted hopes for a breakthrough with creditors this weekend.

At the closing bell, the Dow Jones Industrial Average was at 17,759.54, up 210.92 points (1.20 percent).

The broad-based S&P 500 jumped 25.21 (1.23 percent) to 2,076.52, while the tech-rich Nasdaq Composite Index surged 75.30 (1.53 percent) to 4,997.70.

Stocks were in positive territory all day after Athens's latest plan conceded ground on major sticking points including tax and pensions. The proposal was welcomed by French and Italian officials, while German officials were more circumspect.

The surge in US markets is due to "optimism on the possibility of getting a deal with Greece," said Bill Lynch, director of investment at Hinsdale Associates.