Wall Street gains on treasury plan; S&P 500 up 7%

The US markets rallied as investors cheered details of the government plan to mop up toxic assets from banks' balance sheet. It is the first time since mid-November that all the three major indices finished up more than 6 percent.

The government is planning to loan private firm’s money to buy up to 1 trillion dollars of bad assets then share in the profit or loss when they are sold at a later date.