The Dow Jones industrial average climbed back above 10,000 after closing below that threshold Monday for the first time in three months. European markets rose in afternoon trading.

World stock markets have been tumbling in recent weeks on concerns that debt problems in Greece, Portugal and Spain will spread to larger countries and undermine Europe's common currency, the euro. EU officials are expected to discuss those issues when they meet Thursday.

The European debt problems are the latest worry for investors, who have put a robust 10-month rally on hold. Stocks started to retreat in mid-January after China said it would try to control its economy to avoid speculative bubbles. Things got worse when President Barack Obama announced plans to curb trading by large financial institutions.

On Tuesday Greece took its latest steps to calm markets, pledging to increase retirement ages, raise fuel taxes and accelerate reforms. However a strike over the government's new austerity measures is still expected to proceed on Wednesday.

"There's some euphoria that maybe it's not going to be blowing up," said Erik Davidson, director of investments for Wells Fargo Private Bank in Carmel, Calif., referring to easing fears over Greece.

In late morning trading, the Dow rose 111.02, or 1.1 percent, to 10,019.41. The Standard & Poor's 500 index rose 8.87, or 0.8 percent, to 1,065.61, while the Nasdaq composite index rose 17.32, or 0.8 percent, to 2,143.37.

In corporate earnings, Coca-Cola Co. reported fourth-quarter profit that matched analysts expectations. Its revenue topped forecasts as sales rose globally. Coca-Cola shares rose $1.66, or 3.2 percent, to $54.31.

Investors are shrugging off a steep drop in wholesale inventories. The Commerce Department said that businesses cut wholesale inventories by 0.8 percent in December. Economists expected a gain of 1 percent, according to Thomson Reuters.

Stocks have become more volatile in recent weeks as concerns grow about the strength and sustainability of a global economic recovery. The Dow, which fell almost 104 points Monday, has posted triple-digit moves in 10 of the last 16 trading days. The index has posted four consecutive Dow market has retreated 7.6 percent since hitting a 15-month high in the middle of January.

Crude oil rose 98 cents to $72.87 per barrel on the New York Mercantile Exchange.

More than three stocks rose for every one that fell on the New York Stock Exchange, where volume came to 288 million shares compared with 288.1 million shares traded at the same point Monday.

The Russell 2000 index of smaller companies rose 5.31, or 0.9 percent, to 591.80.