US stocks surge on G20 promises of maintaining stimulus

Nov 9, 2009, 21:54 GMT

New York - US stocks rose sharply on Monday as the world's 20 leading economies promised to keep up public spending until a broader global economic recovery takes hold.

Financial companies climbed, while commodities producers also gained amid a rise in metals and oil prices.

Finance ministers at a summit of the Group of 20 in Scotland agreed over the weekend keep the recovery alive by maintaining massive stimulus packages.

The group warned of escalating unemployment and said it was not time to wind back the massive anti-crisis measures that governments have rolled out to counter the world's worst downturn in six decades.

The G20's pledge helped US stocks maintain a broad rally this month. The Dow Jones Industrial Average climbed for its fourth straight day and is trading at its highest level of 2009. All major indices gained more than 3 per cent last week.

On Monday the blue-chip Dow surged 203.52 points, or 2.03 per cent, to 10,226.94. The broader Standard and Poor's 500 Index gained 23.78 points, or 2.22 per cent, to 1,093.08. The technology-heavy Nasdaq Composite Index jumped 41.62 points, or 1.97 per cent, to 2,154.06.

The US currency plunged against the euro to 66.69 euro cents from 67.37 euro cents on Friday. The dollar was virtually unchanged against the Japanese currency at 89.98 yen, compared to 89.95 yen Friday.