Stocks took a big jump in the right direction this morning, reassured by worldwide efforts to prop up the banking system, the Wall Street Journal reports. The Dow rose more than 400 points at the bell, with the S&P and Nasdaq rising 4.4% and 4.7% respectively. The moves followed big rallies abroad, with most European indexes up around 6%, and Hong Kong’s benchmark up 10.2%.
This weekend, leaders of 15 eurozone countries pledged to guarantee inter-bank loans through 2009, and will allow governments to buy stock in distressed financials. “This is what the market was hoping to see,” said one strategist. Morgan Stanley jumped 39% in premarket trading, after closing a deal with Mitsubishi for $9 billion in funding. Crude oil futures jumped $3.60 to $81.30 a barrel.