NEW YORK — Stocks had their biggest gains in more than two weeks Monday after European officials pledged to take action to resolve the region’s debt problems. The Dow Jones industrial average jumped 272 points, making up about a third of last week’s losses.
European ministers told a meeting of global finance leaders in Washington over the weekend that they would take bolder steps to fight the debt crisis, which threatens to slow the global economy. President Obama called on Europe’s leadership Monday to move more quickly to address the problems.
Germany wants banks and private institutions that hold Greek bonds to take a bigger loss on those holdings to reduce Greece’s debt burden. European officials have talked about increasing the size of Europe’s $595 billion rescue fund by allowing it to take loans from the European Central Bank.
“The news leaking out of Europe is giving investors hope that the politicians and central bankers in Europe might be putting together a plan,” said Channing Smith, managing director of Capital Advisors Inc. “The devil’s in the details.”
The Dow Jones industrial average shot up 272.38 points, or 2.5 percent, to 11,043.86. It was the biggest gain since Sept. 7. JPMorgan Chase & Co. jumped 7 percent to $31.65, the most of the 30 stocks in the Dow.
The Standard & Poor’s 500 rose 26.52, or 2.3 percent, to 1,162.95. The Nasdaq composite rose 33.46, or 1.4 percent, to 2,516.69.
About three stocks rose for every one that fell on the New York Stock Exchange. All 10 industry groups in the S&P 500 rose.
Financial stocks had the biggest gains in the S&P 500, rising 4.4 percent. Banks have the most to lose if Europe’s debt crisis gets worse, so investors picked up those stocks as hopes built for a resolution. Huntington Bancshares Inc. rose 8.3 percent, and SunTrust Banks Inc. rose 8 percent.
Investors have been on edge about Europe’s debt problems for months. The Dow plunged 6.4 percent last week, its biggest drop since the week ended Oct. 10, 2008 at the height of the financial crisis.
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