Stocks rallied on Monday and the Nasdaq climbed 2 percent, supported by European and Asian equities that rallied partly on a possible merger between two big banks in Greece.

The Dow Jones industrial average <.DJI> was up 189.89 points, or 1.68 percent, at 11,474.43. The Standard & Poor's 500 Index <.SPX> was up 21.73 points, or 1.85 percent, at 1,198.53. The Nasdaq Composite Index <.IXIC> was up 51.66 points, or 2.08 percent, at 2,531.51.

(Reporting by Ryan Vlastelica)