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8B – Daily News – Tuesday, May 11, 2010 NEW YORK (AP) — Stocks rocketed to their biggest gain in a year and bond prices fell Monday after a nearly $1 trillion plan to contain Europe’s debt cri- sis reassured investors. The Dow Jones industri- al average rose about 405 points to its biggest advance since March 2009. Broader U.S. indexes outpaced the Dow’s 3.9 percent rise. Gains in several European markets topped 9 percent. The yield on the bench- mark 10-year Treasury note, which moves opposite its price, rose to 3.55 per- cent from 3.43 percent late Friday. The drop in demand for safety holdings like Treasurys signaled that investors are less afraid that Europe’s debt problems will endanger a global recovery. The European Union and the International Mone- tary Fund agreed to create a nearly $1 trillion rescue fund to support European Stocks surge on plan to ease European debt crunch Wall Street nations burdened by heavy debt. Analysts caution that countries like Greece will still need to make painful spending cuts in the coming years and that the debt prob- lems won’t disappear any time soon. Nonetheless, the size of Europe’s response was far greater than most analysts had expected, and signaled that policymakers are ready to take significant measures to shore up the euro and keep Europe’s debt woes from spreading. ‘‘The market is breathing a huge sigh of relief that the EU has taken aggressive steps,’’ said Alan Gayle, senior investment strategist at RidgeWorth Investments in Richmond, Va. Investors drew reassur- ance after the Federal Reserve and other central banks stepped up with financial support to corral what analysts warned was a growing financial crisis. The Fed restarted a pro- gram from 2008 to ship dol- lars overseas through the foreign central banks. Those central banks can then lend the dollars out to banks in their home coun- tries. The Bank of England, the European Central Bank, the Bank of Canada, the Swiss National Bank and the Bank of Japan are also involved in the dollar-swap effort. Markets around the world plummeted last week after fears grew that Greece’s debt problems would spread to other strug- gling European economies like Spain, Portugal and Italy. The Dow slid 5.7 per- cent last week in its worst drop since the depths of the financial crisis in October 2008. On Thursday alone, the Dow was down nearly 1,000 points late in the day ties, which become more attractive to buyers outside the U.S. when the dollar is weak. As investors jump back into riskier assets like stocks on Monday, U.S. bond prices tumbled. The price of the 10-year note fell by about a point, or $1 per $100. before recovering much of its losses. Triple-digit Dow moves have again become the norm. The latest swings are reminders of the big swings that occurred during the credit crisis in late 2008 and early 2009. The Dow rose 404.71, or 3.9 percent, to 10,785.14. At its peak, the Dow was up nearly 455 points. The climb came after four straight days of losses and was the biggest advance since March 2009, when the market was bouncing off its lowest levels in 12 years. The Dow is still down 420 points, or 3.8 percent, from its 2010 closing high of 11,205 on April 26. The Standard & Poor’s 500 index rose 48.85, or 4.4 percent, to 1,159.73. The Nasdaq composite index rose 109.03, or 4.8 percent, to 2,374.67. A drop in the dollar boosted prices of commodi- YOUR PET FOOD SOURCE Flea & Tick Treatments • ADVANTAGE • ADVANTIX Vaccines & Wormers www.redbluffyamaha.com • FRONTLINE • BIO SPOT All products last 30 days per tube Dog and Cat Wing & Nail Clipping No appointment needed 345 So. Main Street,Red Bluff • (530) 527-4588 Open everyday 9:00am to 6:00pm COME TO US FOR ALL YOUR PET SUPPLIES! Gold also fell, losing $9.60 to $1,200.80 an ounce. 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