NEW YORK (AFP) - The Dow and S&P 500 Friday bolted to fresh records after euro zone ministers agreed to extend Greece's bailout by four months.

The Dow Jones Industrial Average gained 154.67 points (0.86 per cent) to 18,140.44, notching its first record of 2015.

The broad-based S&P 500 rose 12.85 (0.61 per cent) to 2,110.30, while the tech-rich Nasdaq Composite Index jumped 31.27 (0.63 per cent) to 4,955.97.

The bailout will be extended as long as Greece sets out key reform commitments by Monday, Eurogroup chief Jeroen Dijsselbloem said following a meeting with finance ministers in Brussels.

Markets greeted the news, which removes the immediate threat of a Greek default, though analysts also expressed caution.

"For now, crisis averted," said Jack Ablin, chief investment officer at BMO Private Bank, adding that "there is a lingering cloud that's going to continue to hang over the euro zone."

"It's terrific news but I wouldn't get too excited until a permanent deal is signed," said Chris Low, chief economist at FTN Financial.