Stocks rally on Spain; S&P 500 breaks loss streak

NEW YORK (MarketWatch)
U.S. stocks finished sharply higher on Thursdayafter Spain announced austerity measures that focus on spending cuts and not on raising taxes
"It was reality versus expectations, not only is Spain moving past the rioting, but they are imposing austerity, and more austerity than the market was expecting," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago
Such deep spending cuts by a nation already contending with double-digit unemployment is "certainly not advisable, but really it's the only tool they have, and highlights the inflexiblilty of the euro-zone.
The fact that we can control our currency doesn't mean we can't escape austerity, but we can cushion the blow," Ablin added
The Dow Jones Industrial Average rose 72.46 points, or 0.5%, to 13,485.97
The S&P 500 index added 13.83 points, or 1%, to 1,447.15
The Nasdaq Composite advanced 42.9 points, or 1.4%, to 3,136.60