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S&P extends gains, up 2 percent

NEW YORK (Reuters) - Stocks extended their gains on Friday and the S&P 500 rose 2 percent after euro zone leaders agreed to allow rescue funds to be used to stabilize the region's banks.

The Dow Jones industrial average <.DJI> was up 228.03 points, or 1.81 percent, at 12,830.29. The Standard & Poor's 500 Index <.SPX> was up 26.73 points, or 2.01 percent, at 1,355.77. The Nasdaq Composite Index <.IXIC> was up 64.17 points, or 2.25 percent, at 2,913.66.

(Reporting by Ryan Vlastelica; Editing by Chizu Nomiyama)

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