Banking stocks recovered from one of their worst weeks in months on Monday, surging with the broader markets after the European Union unveiled a nearly $1 trillion bailout plan to stabilize the Greek economy.
The KBW Bank index rose 6.21%, to 54.91.
The index of 24 of the country's largest banking companies fell 8.7% last week as Greece's debt crisis rocked the global economy. Even regional banks that have few ties overseas fell sharply on worries that financial problems in Europe could hurt the economic recovery.
Global stocks rose after the European Union, International Monetary Fund, and European Central Bank announced a loan package worth nearly $1 trillion to halt the spreading debt crisis.
The Dow Jones industrial average rose 3.9%, and the S&P 500 index 4.4%.
U.S. banking companies were up across the board, with Bank of America Corp. rising 6.92%; JPMorgan Chase & Co., 2.92%; Wells Fargo & Co., 6.98%; Comerica Inc. 5.81%; U.S. Bancorp, 6.98%; SunTrust Banks Inc., 5.97%, and Regions Financial Corp., 6.51%.
