New York  - Stocks opened higher on Wall Street on Monday as news of European financial rescue plans heartened US investors.

Within the first hour of trading, stocks were up about 5 per cent on the major US indices. The blue-chip Dow Jones Industrial Average picked up 420.62 points, or 4.98 per cent, to 8,871.81 by
10:36 am (1436 GMT). The broader Standard & Poor's 500 Index rose 46.52 points, or 5.17 per cent, to 945.74, while the technology-heavy Nasdaq Composite Index gained 86.63 points, or 5.25 per cent, to 1,736.14.

The rally came after a rough week on world markets and Wall Street's worst week ever as fears about the global financial crisis spooked investors who feared a 700-billion-dollar US government bail- out plan would not be enough to unfreeze credit markets.

The US gain came as investors across Europe piled back into stocks with national bourses gaining ground also after a weekend Group of Seven (G7) meeting pledged action to fight the global crisis and the far-reaching government bank rescue plans. Shares also gained across Asia.

Stocks were also boosted by a US Federal Reserve announcement that it and other central banks would take further measures to infuse liquidity into the markets. (dpa)