Nasdaq closes at record, Dow up 100 points on Greece hopes

U.S. stocks closed higher on Monday, following a global rally in equities, as investors cheered signs of progress in the Greece debt negotiations.

The Nasdaq Composite set a new closing and intraday record, topping the highs set on Thursday. Apple closed up 0.80 percent, while the iShares Nasdaq Biotechnology ETF (IBB) gained 1.5 percent.

The Russell 2000 also ended at a record after earlier hitting a new intraday high.

"The two binary issues out there was the Fed and Greece, and both of those (appear) resolved for the next 12 to 18 months," said Jack Ablin, chief investment officer at BMO Private Bank.

The Dow Jones industrial average closed up about 103 points after gaining as much as 166 points. Goldman Sachs, JPMorgan Chase and American Express rose more than 1 percent to be among index leaders. Financials gained nearly 1 percent as the second-best performer in the S&P 500.

The Dow transports closed up about 0.80 percent after briefly rising more than 1 percent as airlines surged. Barron's gave a favorable outlook on the sector based on lower fuel costs and lack of competition.

Stocks came off session highs in midday trade as investors weighed gains in the dollar and yields, as well as euro zone leaders' remarks on the Greece debt talks.