Published: Tuesday May 11, 2010 MYT 7:40:00 AM
Updated: Tuesday May 11, 2010 MYT 7:45:34 AM
US, global stocks surge on US$1tril plan to ease European debt crunch
NEW YORK: Stocks rocketed to their biggest gain in a year and bond prices fell Monday after a nearly US$1 trillion plan to contain Europe's debt crisis reassured investors.
The Dow Jones industrial average rose about 405 points to its biggest advance since March 2009. Broader U.S. indexes outpaced the Dow's 3.9 percent rise.
Gains in several European markets topped 9 percent.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.54 percent from 3.43 percent late Friday.
The drop in demand for safety holdings like Treasurys signaled that investors are less afraid that Europe's debt problems will endanger a global recovery.
The European Union and the International Monetary Fund agreed to create a nearly $1 trillion rescue fund to support European nations burdened by heavy debt.
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