NEW YORK (CNNMoney.com) -- Stocks surged Monday, recharging the rally, after Treasury's plan to buy up billions in bad bank assets and a better-than-expected existing home sales report raised hopes that the economy is stabilizing.
The Dow Jones industrial average (INDU) gained 497 points, or 6.8%, according to early tallies, posting its biggest one-day point gain since Nov. 21. The S&P 500 (SPX) index rose 54 points, or 7.1%. The Nasdaq composite (COMP) added 99 points, or 6.8%.
"I think the stock reaction is a vote of confidence in the plan," said Jack Ablin, chief investment officer at Harris Private Bank.
He said the stock market is also reacting well because the plan is skewed in favor of the private investor, who only has to be responsible for around 7% of the total in any transaction.
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