Taking their cue from Europe, where $957 billion was made available to head off defaults on government debts, U. S. markets soared on Monday.

It has been reported that the Dow Jones industrial average, by close, rose 3.9 percent, adding 404.71 points, to 10,785.14. The Standard & Poor's 500 rose 4.4 percent, 48.85, to 1,159.73. The Nasdaq composite index added 4.81 percent, 109.03, to 2,374.67.

The benchmark 10-year Treasury note fell 1 1/32 to yield 3.544 percent.

According to the reports, after months of concern over the possibility of Greece defaulting on its debt, the European Union and the International Monetary Fund put loans together to allay fears the debt crisis could spread to Spain and Portugal. Separately, finance ministers worked out the final details on a $143 billion loan package for Greece during the weekend.

It was further reported that markets in Asia and Europe rebounded. The Japan the Nikkei 225 index added 1.6 percent, 166.11 points, to 10,530.70. In Australia, the S&P/ASX 200 rose 2.66 percent to 4,599.78.

The CAC 40 in France rose 9.66 percent. In Italy, the FTSE MIB closed up 11.28 percent.

From Friday's $1.2731, the euro rose to $1.2786. The dollar, against the yen, rose to 93.209 yen from Friday's 91.41 yen. (With Inputs from Agencies)