US stocks rally after disastrous week
The blue-chip Dow reclaimed 11,000 after losing more than 700 points last week. Big banks were leading the gains throughout the session, with JP Morgan Chase soaring over six percent, the best performer in the Dow.
Although European leaders haven't been able to reach any agreement on the next step they would take to help the debt-ridden Greece, investors were happy to hear that they are working on some more aggressive plans to solve the problem.
German Chancellor Angela Merkel said during the weekend that banks and private institutions holding Greek bonds need to take a bigger loss on those holdings to reduce Greece's debt burden.
Investors also shrugged off a dismal report which showed sales of new US single-family dwellings fell in August to a fresh six- month low, while home prices continued to fall from the previous month and was 7.7 percent below year-ago levels.