$700 billion

U.S. stocks jumped the most in six years as growing expectations that lawmakers will salvage a $700 billion bank-rescue package helped the Standard & Poor's 500 Index recover more than half of yesterday's 8.8 percent plunge.
JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. climbed more than 13 percent as Senate leaders vowed to resume work on the bailout plan this week after its rejection spurred the market's steepest decline in two decades. Hess Corp. and Schlumberger Ltd. added more than 5.8 percent as optimism about the plan helped oil rebound from a $10-a-barrel drop. All 10 industries in the S&P 500 advanced at least 1.3 percent.
``There is some renewed hope that Congress will come back and try to get the amended plan through,'' Robert Doll, who oversees $1.3 trillion as chief investment officer of global equities at BlackRock Inc. in Plainsboro, New Jersey, said in a Bloomberg Television interview. ``We have to restore confidence, we have to reduce fear, we have to get banks to lend money.''
The S&P 500 rose 58.34 points, or 5.3 percent, to 1,164.73, its biggest advance since July 2002. The Dow Jones Industrial Average jumped 485.21, or 4.7 percent, to 10,850.66 and earlier gained more than 500 points. The Nasdaq Composite Index added 5 percent to 2,082.33. More than four stocks climbed for each that fell on the New York Stock Exchange.
Worst Since 2002
Even with the advance, the S&P 500 had its worst month since 2002, with a decline of 9.2 percent, and tumbled 9 percent for the quarter. The cost of borrowing dollars overnight rose the most on record as banks hoarded cash after the defeat of the bailout plan by Congress.
European stocks rose, while Asian shares declined. Government bonds in the U.S. and Europe fell. The dollar climbed the most against the euro since the shared currency's 1999 introduction.
More than $1 trillion in market value was erased yesterday in the worst day for the S&P 500 since the ``Black Monday'' crash of 1987 after the House of Representatives rejected a plan designed to rid financial institutions of bad loans. President George W. Bush this morning urged passage of the legislation to prevent ``lasting damage'' to the economy.
The Dow average lost 6 percent in September, and the Nasdaq fell 12 percent. The S&P 500's retreat since the end of June was its fourth-straight quarterly decline, the longest stretch since 2001. The Dow slipped 4.4 percent and the Nasdaq lost 9.2 percent.
$600 Billion
The MSCI World Index of 23 developed nations dropped 12 percent this month as almost $600 billion of credit losses and writedowns at financial institutions worldwide prompted banks to hoard cash, forced Lehman Brothers Holdings Inc. into bankruptcy and spurred government seizures of American International Group Inc. and the U.K.'s Bradford & Bingley Plc.
Financial companies in the S&P 500 this month traded at 1.1 times their book value, the lowest valuation since Bloomberg began tracking the data in 1995. Commercial banks in the gauge trade at 0.8 times book value, also a 13-year low.
``The market was way overdone, and we're seeing a bounce back,'' said John Wilson, the co-director of equity strategy at Memphis, Tennessee-based Morgan Keegan, which manages $120 billion. ``The stage was set for saner minds to step in and pick some things off today. We've seen some nice gains in the some of the financials.''
JPMorgan, Citigroup
JPMorgan, the biggest U.S. bank by deposits, climbed 14 percent to $46.70. Citigroup rose 16 percent to $20.51. Bank of America surged 16 percent to $35. Goldman Sachs Group Inc. increased 6.1 percent to $128 and Morgan Stanley gained 9.6 percent to $23.
Senate Majority Leader Harry Reid said approving the bank bailout legislation remains a top priority. Congress will take action on the plan this week, Senate Minority Leader Mitch McConnell said. Voters have flooded Capitol Hill offices with complaints about the bill's rejection, according to a House Republican leadership aide.
Bush said the defeat of the plan ``is not the end of the legislative process.'' Presidential candidates Barack Obama and John McCain joined him in urging Congress to return to work on the plan.
The S&P 500 Regional Banks Index of 12 stocks climbed 16 percent after plunging 24 percent yesterday, its biggest tumble since the gauge was created in 2003.