U.S. stocks opened sharply higher on Monday, with the indexes rising more than 2 percent, after the U.S. government released details of a plan to clean up toxic assets from banks' balance sheets.

The move is a crucial component of efforts to stabilize the recession-hit economy.

The Dow Jones industrial average <.DJI> was up 152.60 points, or 2.10 percent, at 7,430.98. The Standard & Poor's 500 Index <.SPX> was up 17.12 points, or 2.23 percent, at 785.66. The Nasdaq Composite Index <.IXIC> was up 26.86 points, or 1.84 percent, at 1,484.13.

(Reporting by Ellis Mnyandu, Editing by Chizu Nomiyama)