Stock markets around the world rebounded on Monday, helped by governments reinforcing their plans for countering the global economic crisis.
Bond yields rose as a result and the US dollar slipped as the need for a safe haven diminished.
US stocks rallied on optimism that US President-elect Barack Obama's plan to invest in a massive infrastructure plan will bolster the economy and on hopes for a rescue plan for American car manufacturers.
Over the weekend, Mr Obama outlined plans for the largest infrastructure investment since the 1950s in a bid to create at least 2.5 million jobs by 2011.
Companies tied to large construction projects helped fuel the second day of gains in a row, including Dow component Caterpillar, which was up 12.5% at $US43.03.
Shares in industrial, energy and materials companies also benefited, and an advance in commodities, including oil, lifted stocks related to resources.
The Dow Jones Industrial Average leapt 298.76 points or 3.46% to finish at 8,934.18, after a brief push above the key level of 9,000.
The Nasdaq vaulted 62.43 points or 4.14% to 1,571.74 and the Standard & Poor's 500 rallied 33.63 points or 3.84% to 909.70.
Europe
European stock markets posted huge gains at close of trade on Monday, with London up 6.19%, on prospects for fresh government action against the financial crisis.
The London FTSE index of leading shares added nearly 251 points to end the day at 4,300.06, while in Paris the CAC 40 added 8.68% to reach 3,247.48.
In Frankfurt the Dax shot up 7.63% to 4,715.88.
There were similar or larger advances in Madrid, Milan, Moscow and in Scandinavia, as investors took heart from news of Mr Obama's planned public works programme.
