Dow cracks 13,000 for the first time since the 2008 financial crisis

The Dow Jones Industrial Average cracked 13,000 for the first time since the financial crisis Tuesday.

The blue-chip stock index briefly eclipsed that mark in the middle of the day’s trading as investors pushed the market tracker to its highest point since May 2008, before the subprime mortgage bubble burst and brought on the financial crisis.

{mosads}It also served as the latest indication that the economic recovery could be gaining steam, potentially buoying President Obama’s reelection chances.

Stocks dipped after clearing that threshold, but still retained gains by the end of the day, closing at 12,965 points. The Dow reached an all-time high of 14,066 back in October 2007.

Markets climbed on the latest developments out of Europe, as it appeared that a fresh deal to bail out struggling Greece had been reached by that continent’s leaders.

In a call to German Chancellor Angela Merkel, Obama praised her leading work on the matter, saying he “welcomed” the Monday evening agreement and that it was the latest in a series of “positive steps” taken by the eurozone, according to the White House.

The roughly $175 billion deal would require private creditors to take a steeper haircut on Greek holdings to help get the government back on more sustainable fiscal footing, and it remains to be seen if it can become a reality.

Nonetheless, the surging market serves as the latest indication that the economy is getting back on its feet. A robust economic recovery would put wind in the sails of the president’s reelection campaign, as jobs and the economic picture are expected to play a dominant role in voters’ minds.

While a climbing Wall Street could serve as a positive sign for the economic recovery, more fundamental aspects, such as the unemployment rate and the state of the housing market, are likely to play a more substantial role.

Updated at 4:22 p.m.