U.S. stocks rose on Monday, along with other global risk assets, as investors welcomed a promise from German Chancellor Angela Merkel and French President Nicolas Sarkorzy to devise a bailout plan for the Eurozone.
The S&P 500 Index rose 22.29 points, or 1.93 percent, to trade at 1,177.75 at 9:35 a.m. ET. The Dow Jones Industrial Average climbed 185.31 points, or 1.67 percent, to trade at 11,288.43. The Nasdaq Composite rallied 1.78 percent.
The euro jumped over 200 pips against the U.S. dollar since the opening of Monday’s Asian session.
Over the weekend, Merkel and Sarkozy promised to announce a plan in response to the European debt crisis by the end of the month before the November G20 summit.
The plan will include recapitalizing European banks and dealing with Greece’s debt situation.
“We need to deliver a response that is sustainable and comprehensive,” said Sarkozy, according to Reuters.
He and Merkel, however, were skimpy on details, preferring to iron them out in “confidentiality,” said Merkel’s spokesperson.
The Merkel-Sarkozy announcement “delivered little in substance,” sated Credit Agricole in a research note.
The market’s “patience will run thin if no progress is made on these fronts,” it warned.