By Caroline Valetkevitch
NEW YORK (Reuters) - Stocks rose on Tuesday as worries eased further about any immediate debt default by Greece, extending the market's recent bounceback.
After nearing its 200-day moving average Monday, the S&P 500 rebounded solidly above the level. Analysts saw 1,360 as the next technical level on the upside.
The Nasdaq reclaimed positive territory for the year and led the market's advance, boosted by a jump in semiconductor stocks. A semiconductor index <.SOX> shot up 2.3 percent.
Optimism about an upcoming confidence vote by the Greek parliament also supported the market. Consensus grew that Prime Minister George Papandreou's cabinet would survive the vote, easing fears about the euro-zone debt crisis that have weighed on the market for months and contributed to the S&P 500's 5 percent drop since the start of May.
"The most important issue for the markets over the near term is what happens in Greece, and whether that country can get the necessary funding to avoid a potential default," said Michael Sheldon, chief market strategist of RDM Financial, in Westport, Connecticut.
"If you're an investor, you don't want this Greek debt crisis to touch off another round of financial contagion around the world."
The Dow Jones industrial average <.DJI> was up 109.71 points, or 0.91 percent, at 12,190.09. The Standard & Poor's 500 Index <.SPX> was up 15.77 points, or 1.23 percent, at 1,294.13. The Nasdaq Composite Index <.IXIC> was up 49.46 points, or 1.88 percent, at 2,679.12.
The Dow and the S&P 500 finished last week with gains after six weeks of declines. The Nasdaq, however, ended the week in the minus column.
The Nasdaq also got a lift from U.S.-traded shares of Research In Motion Ltd
The vote in Greece's parliament was due around 5 p.m. EDT. Officials said the Greek government had until July 3 to approve new steps to get the next installment of 110 billion euros in aid from the European Union and the International Monetary Fund.
Analysts cautioned, however, there could be steep downside potential if the vote doesn't go as expected.
Another supportive factor for the market came from the economic indicators calendar. Sales of existing U.S. homes fell 3.8 percent in May, much less than some economists had feared.
(Reporting by Caroline Valetkevitch; Additional reporting by Ryan Vlastelica; Editing by Jan Paschal)
