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NEW YORK- Wall Street soared on Monday, capping the best two-day run since the aftermath of the 1987 stock market crash, as the government's decision to rescue Citigroup spurred an enormous relief rally.
Dow component Citigroup, the second-largest U.S. bank, surged nearly 60 percent to $5.95 and gave one of the biggest lifts to the Dow as the bailout plan eased jittery investors' concerns regarding the financial sector. Last week, Citigroup's stock tumbled to its lowest level in about 15 years amid uncertainty over the bank's future.
"The markets love a bailout," said Brian Gendreau, investment strategist at ING Investment in New York. "It seems to have instilled a bit of confidence in the sector itself."
Adding to the optimism, President-elect Barack Obama named his team of economic advisors -- viewed as being favorable for Wall Street.
Obama appointed New York Fed President Timothy Geithner as Treasury secretary and Lawrence Summers, who has previously held the Treasury post, as director of the National Economic Council.
The Dow Jones industrial average .DJI raced up 396.97 points, or 4.93 percent, to 8,443.39. The Standard & Poor's 500 Index .SPX jumped 51.78 points, or 6.47 percent, to 851.81. The Nasdaq Composite Index .IXIC leaped 87.67 points, or 6.33 percent, to 1,472.02.
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