By Jennifer Glickel
DNAinfo Reporter/Producer
WALL STREET — Following a frightening free fall last Thursday, stocks bounced back on Monday, posting their biggest one-day gain in more than a year after European leaders and major central banks approved an almost $1 trillion bailout plan to help rein in Europe's credit crisis.
The Dow Jones industrial average rose about 405 points, or 3.9 percent, to 10785.14, which was its largest single-day gain since Mar. 23, 2009. The S&P 500 index jumped 49 points, or 4.4 percent, which was also its biggest one-day increase since the same day last year.
The gain in U.S. stocks followed similar jumps in European and Asian markets after the European Union and International Monetary Fund agreed to the $954.83 billion bailout early Monday morning. The emergency plan's approval quelled investor concerns about the instability of some European economies burdened by major debt crises.
"There is this collective sigh of relief," Alan Gayle, the senior investment strategist for RidgeWorth Capital Management, told the New York Times.
"There is a clear rally going on in the financials. A lot of the credit risk has been relieved."
Monday's boost comes on the heels of last week's selling frenzy when markets around the world plummeted on fears that Greece's debt problems would further weaken other struggling European economies like Spain, Portugal and Italy.
There were also concerns that a trader's error may have caused Thursday's Dow Jones roller coaster ride, but that theory has not been confirmed.
