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M. Continuo

Government's bank plan ignites Wall St. rally


    NEW YORK (Reuters) - Stocks surged on Monday, with the Dow and the S&P 500 posting their best one-day advance in nearly five months, after the Obama administration unveiled a long-awaited plan to purge toxic assets from bank balance sheets.

    A report showing a rebound in existing-home sales in February added to the positive tone.

    The Dow Jones industrial average gained 497.48 points, or 6.84 percent, to 7,775.86. The Standard & Poor's 500 Index rallied 54.37 points, or 7.07 percent, to 822.91. The Nasdaq Composite Index surged 98.50 points, or 6.76 percent, to 1,555.77.

    (Reporting by Rodrigo Campos; Editing by Leslie Adler)