Stocks Soar on Monday, Dow Up 400 Points

May 10, 2010 Updated: October 1, 2015

Traders work on the floor of the New York Stock Exchange during morning trading on May 10, 2010 in New York City. (Spencer Platt/Getty Images)
Traders work on the floor of the New York Stock Exchange during morning trading on May 10, 2010 in New York City. (Spencer Platt/Getty Images)
NEW YORK—Stocks rallied on Monday globally on news that European governments approved a $1 trillion euro currency and debt rescue plan to stabilize the European financial markets.

The Dow Jones Industrial Average jumped 405 points, the highest one-day increase in more than a year. The broader S&P 500 Index soared 49 points, or 4.4 percent, and the Nasdaq Composite Index also rallied 4.8 percent, capping an overall positive day for markets around the world.

The euro gained against the dollar after a 4 percent devaluation suffered last week as investors were nervous that Eurozone was unable to contain a spreading sovereign credit crisis threatening to engulf Europe.

For the first time since last year, all 30 components of the Dow Jones Industrial Average increased on Monday. Bank of America Corp. and Caterpillar Inc. led the gains in the Dow, as banks globally breathed a sigh of relief as the debt crisis eased lending rates among financial institutions.

In Europe, London’s FTSE 100 Index increased 5.2 percent, and the DAX rose 5.3 percent in Frankfurt trading. France’s stock market index, the CAC 40, jumped almost 10 percent.

Aflac, the insurance company which owns almost $2 billion in bonds of Portuguese and Greek banks, saw its stock climb more than 12 percent.

The stock euphoria did not benefit all companies. Dairy producer Dean Foods Co.’s shares slumped 28 percent in its biggest one-day loss ever, as the company’s quarterly earnings projections fell way below analyst expectations. It also announced more job cuts. Credit ratings firm Moody’s Corp. was another loser on Monday, as its shares dropped 7 percent after it disclosed that the SEC is investigating its business.