U.S. stocks rallied, sending the Dow Jones Industrial Average to its biggest point gain ever, on a government plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars.
The Standard & Poor's 500 Index rebounded from its worst week in 75 years with its steepest advance since 1987, and the Dow climbed more than 900 points. Morgan Stanley soared as much as 90 percent after sealing a $9 billion investment from Japan's Mitsubishi UFJ Financial Group Inc. Bank of America Corp. and Citigroup Inc. jumped more than 8 percent, while General Motors Corp. and Ford Motor Co., the largest U.S. automakers, rose more than 20 percent each.
The S&P 500 added 104.48, or 11.6 percent, to 103.7 at close The Dow increased 937.7, or 11.1 percent, to 9,388.89, eclipsing its previous record 499-point gain in March 2000. The Nasdaq Composite Index advanced 194.74, or 11.8 percent, to 1,844.25. Eight stocks gained for each that fell on the New York Stock Exchange.
The Dow Jones Stoxx 600 Index rebounding from its worst week on record, as governments in Europe, the U.S. and Asia agreed to support banks. The Stoxx 600 advanced 8.5 percent to 222.65 at 4:04 p.m. in London. The index has dropped 39 percent in 2008 as concern that frozen credit markets will trigger a recession erased about $28 trillion in value from global stock markets. Financial firms have reported $635 billion in losses and writedowns from U.S. mortgage-related investments since the beginning of last year.
National benchmark indexes in Europe climbed more than 4 percent in 16 of the 17 western European markets that were open. The U.K.'s FTSE 100 jumped 5.3 percent. Germany's DAX advanced 9.3 percent. France's CAC 40 increased 7.7 percent as Total SA gained.
Asian stocks jumped, rebounding from the worst week since at least 1987, on speculation government efforts to support banks will prevent the global credit crisis from worsening.
The MSCI Asia Pacific excluding Japan Index soared 7.3 percent to 272.56 at 6:01 p.m. in Hong Kong, rebounding from last week's 20 percent tumble. Financial stocks accounted for almost half of today's gain. Japan is shut for a holiday.
Australian stocks rallied from the biggest weekly decline in 21 years after Prime Minister Kevin Rudd guaranteed bank deposits and European leaders agreed to shore up lenders, easing funding costs. Australia's S&P/ASX 200 Index jumped 220 points, or 5.6 percent, to 4,180.70 at the close in Sydney, its biggest gain since October 1997, after plunging 16 percent last week.
Emerging-market stocks rebounded from their worst week in at least a decade as world leaders agreed to support banks, easing concern that the credit crisis will stifle developing economies. The MSCI Emerging Markets Index rose 4.9 percent to 620.90 at 10:06 p.m. New York time. Brazil's Bovespa gained 6.9 percent after the government injected 100 billion reais in the financial system. China's CSI 300 Index climbed 4.1 percent to 1,985.49, the first gain for the country's benchmark index in six days.
Indian stocks rose, driving the Sensitive index to its biggest gain in more than four years, as governments around the world stepped up efforts to avert a collapse of the global banking system. The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 781.24, or 7.4 percent, to 11,309.09, its biggest gain since May 18, 2004.