After posting the worst weekly performance in almost three years, U.S. stocks rallied on Monday on hopes that European financial officials are on the brink of stabilizing the Eurozone debt crisis.
The Dow Jones Industrial Average gained 272.38 points, or 2.53 percent, to close at 11043.86; the S&P 500 index rose 26.52 points, or 2.33 percent, to 1162.95; and the Nasdaq climbed 33.46 points to finish at 2516.69.
European financial figures convened in Washington, D.C. over the weekend for the annual meeting of the World Bank and International Monetary Fund.
While Euro officials did not reveal specific details about the Eurozone rescue plan, any apparent news about the continent’s debt woes seem to heavily impact equity markets.
Reportedly, Eurozone officials may consider expanding the European Financial Stability Fund (EFSF), which has already bailed out Portugal, Italy, Ireland, Greece and Spain.
Indeed, last week’s market swoon (of more than 5 percent) was partially due to growing fears that Europe’s debt problems were insurmountable and Greece would soon default. The Dow plunged 6.4 percent last week, its worst performance since the dark days of October 2008.
Meanwhile, on Monday, shares of Berkshire Hathaway's Class B (NYSE: BRK.B) shares surged 8.62 percent after the company said it will repurchase shares on the open market.
Also, Boeing shares (NYSE: BA) gained 4.20 percent after the aerospace giant delivered its first 787 Dreamliner aircraft to All Nippon Airways of Japan after three years of delays.
Bank and financial stocks, which were hammered last week, delivered handsome gains on Monday: JPMorgan Chase (NYSE: JPM) soared 6.96 percent; Citigroup (NYSE: C) jumped 6.97 percent, Wells Fargo (NYSE: WFC) climbed 4.64 percent; and even Bank of America (NYSE: BAC) delivered a 4.60 percent improvement.
The yield on the 10-Year Treasury rose to 1.90 percent (up from historic lows reached last week), while oil futures jumped 1.80 percent.