Energy and Indices led a broad rally Tuesday as investors grew confident in the U.S. recovery and put aside for now their worries about European sovereign debt.

The Dow Jones Industrial Average was recently up 167 points, or 1.6%, to 10,265, led by a 5.8% gain in the shares of Bank of America Corp. after it reported “significant gains” in the number of modified mortgages it handles through the government’s Home Affordable Modification Program, designed to lower monthly payments for struggling customers.

Elsewhere, the British banking giant Barclays announced better- than-expected quarterly earnings, pushing its American depositary shares up almost 14%.

Meetings by European finance ministers provided more visibility into the euro zone’s coordination to help heavily indebted Greece. Traders are increasingly resigned to the idea that the country’s recovery will be gradual, but they’re also content that the EU will back up any of its members before their woes spread too widely through the world economy.

The S&P 500 was up 1.7%, led by gains of about 2% each in its financial, energy, materials, and industrial sectors. The Nasdaq Composite Index was up 1.3%.

In U.S. economic news, the Federal Reserve Bank of New York’s Empire Manufacturing Survey showed conditions for New York manufacturers improved sharply in February, with its business conditions index rising to 24.91 this month, from 15.92 in January.

The National Association of Home builders said its monthly index of U.S. home builder confidence grew in February, recovering from a seven-month low. However, the measure is still at lows signaling worry in the housing sector.

The dollar’s pullback and renewed tension over Iran’s nuclear ambitions boosted crude oil futures above $76 per barrel. Gold futures also climbed. Gold has been trading as a risk asset in recent months.