Stocks extended gains on Monday with the Nasdaq rising three percent after a merger between two big banks in Greece and a rebound in consumer spending boosted appetite for risky assets.

The Dow Jones industrial average <.DJI> was up 242.22 points, or 2.15 percent, at 11,526.76. The Standard & Poor's 500 Index <.SPX> was up 30.55 points, or 2.60 percent, at 1,207.35. The Nasdaq Composite Index <.IXIC> was up 74.54 points, or 3.01 percent, at 2,554.39.

(Reporting by Ryan Vlastelica)