(CNN) -- U.S. stocks posted sharp gains Monday, following reports of strong Black Friday weekend sales and amid optimism that European leaders may be working toward a solution to the continent's debt crisis.
The Dow Jones industrial average (INDU) surged 315 points, or 2.8%, the S&P 500 (SPX) added 37 points, or 3.2%, and the Nasdaq composite (COMP) rose 86 points, or 3.5%. The advance broke a 4-day losing streak for the Dow, and seven consecutive days of declines for the S&P 500 and Nasdaq.
The rally was broad, with all the stocks in the three major indexes gaining ground. Financials were among the biggest winners, with Morgan Stanley (MS, Fortune 500), Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500), JPMogan Chase (JPM, Fortune 500), Bank of America (BAC, Fortune 500) and Wells Fargo (WFC, Fortune 500) surging between 3% and 8%.
The mood on Wall Street was cheerful after major retailers reported record sales of $52.4 billion over Black Friday weekend -- up 16% from last year -- according to a survey by the National Retail Federation released Sunday.
Retailers like Wal-Mart (WMT, Fortune 500), Kohl's (KSS, Fortune 500), Costco (COST, Fortune 500), Target (TGT, Fortune 500), Gap (GPS, Fortune 500) and Home Depot (HD, Fortune 500) were up between 1% and 3%, while Best Buy (BBY, Fortune 500), Macy's (M, Fortune 500), Tiffany & Co. (TIF) and Saks Inc. (SKS) climbed between 3% and 6%.
Investors also appeared to shrug off a warning by Moody's that the intensifying European debt crisis could lead to a downgrade of the region's sovereign debt.
While it's not new, reports about a coordinated effort to create some type of fiscal union in Europe appear to be lifting sentiment.
Meanwhile, the Organization for Economic Cooperation and Development called for policies to be put in place immediately to stop the eurozone debt crisis from spreading.
There could be more news in the afternoon, following an E.U.-U.S. summit in Washington on Monday, with leaders discussing Europe's crisis, among other issues.
Last week, European bond yields spiked following a series of disappointing debt auctions, which further heightened fears of a contagion in the region and sent stocks about 5% lower for the week.
World markets: European stocks rallied in afternoon trading. Britain's FTSE 100 (UKX) jumped 2.5%, the DAX (DAX) in Germany soared 4.2% and France's CAC 40 (CAC40) climbed 4.3%.
Asian markets ended higher. The Shanghai Composite (SHCOMP) ticked up 0.1%, while the Hang Seng (HSI) in Hong Kong added 2% and Japan's Nikkei (N225) rose 1.6%.
Companies: Shares of Amazon (AMZN, Fortune 500) jumped after the online retailer said it sold four times more Kindles during this Black Friday weekend than the same period last year.
Apple (APPL) shares also rose after the retailer saw strong Black Friday sales, with reports showing that customers bought 14.8 iPads per hour, up 68% year-over-year. Customers bought 10.1 Macs per hour, up 23% from 2010.
Economy: New home sales rose 1.3% to an annual rate of 307,000 in October. Economists were expecting the annual rate to come in at 312,000.
Currencies and commodities: The dollar slumped against the euro and the British pound, but edged higher versus the Japanese yen.
Oil for January delivery jumped $2.40 to $99.17 a barrel.
Gold futures for December delivery rose $30.30 to 1,716 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.08% from 1.97% late Friday. To top of page
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