U.S. stocks closed at three-month highs for the second day in a row Monday, extending last week's rally on the hope for more assistance for the troubled euro zone.
The S&P 500 rose to its highest point since early May, but pared its gains going into the close. The benchmark index also failed to breach 1,400, a level that could spur further buying. The S&P 500 hasn't closed above the 1,400 level since May 2.
Sentiment in Spanish and Italian bond markets - the forefront of the three-year debt crisis - improved, with two-year Spanish yields falling to 3.42 per cent on Monday, less than half of a late July high of over 7 per cent.