U.S. Markets Soar As Treasury Prepares To Buy Bank Stocks

New York, NY (AHN) - U.S. markets snapped their losing streak with a massive rally that sent all three major indices 11 percent higher as global efforts to restore financial markets are beginning to restore confidence.

Last night the United Kingdom announced plans to inject up to $63 billion in three U.K. banks; part of which was a $34 billion investment in RBS in exchange for a 63 percent stake in the bank. The move prompted speculation the U.S. would to the same. The Treasury is expected to have a plan outlined come Tuesday.

The Dow Jones Industrial average surged 936 points or 11.1 percent, its biggest point gain ever and fifth largest percentage gain. 29 of 30 Dow components finished higher with General Electric the only laggard. News that GE considered seeking a bank charter in order to access the fed lending facility pressured shares. General Motors was the Dow leader, adding 33.1 percent after hitting 50 year lows on Friday.

The S&P 500 jumped 104 points or 11.5 percent, also marking its largest ever one day point gain. All ten major economic sectors rose on Monday. Energy posted the largest gain as the sector rose 18.5 percent on the session.

Tech rallied as well, the Nasdaq Composite rose 194 points or 11.8 percent. Shares of Apple helped push the Nasdaq higher after an analyst upgrade sparked a 13.9 percent rally in the stock.

Monday marked the end to the Dow and S&P's eight session losing streak. It was also the first day all three major indices finished higher since Sept. 30.

In corporate news, the Morgan Stanley-Mitsubishi UFJ deal was completed. The Japanese bank purchased convertible and non-convertible preferred stock carrying a 10 percent dividend. The deal provides Morgan Stanley with well needed capital and now puts them well above liquidity requirements.

Tuesday's session will see quarterly earnings reports from Intel, Johnson & Jonson, PepsiCo and Domino's.