U.S. stocks climbed for a second day, led by financial companies and builders, on expectations a government plan to limit subprime mortgage defaults will boost bank profits and ease the housing slump.

Countrywide Financial Corp. and Fannie Mae rallied on the Treasury’s accord to help some borrowers refinance or freeze interest rates on their adjustable-rate home loans. Lennar Corp. and D.R. Horton Inc., the biggest homebuilders, led a gauge of construction companies to its biggest advance since at least 1994. Apple Inc. gained after Bear Stearns Cos. raised its profit estimate for the maker of iPod music players.

The Standard & Poor’s 500 Index added 15.44, or 1 percent, to 1,500.45 at 2:51 p.m. in New York. The Dow Jones Industrial Average climbed 124.05, or 0.9 percent, to 13,569.01. The Nasdaq Composite Index increased 32.2, or 1.2 percent, to 2,698.56. More than four stocks gained for every one that fell on the New York Stock Exchange. [MORE]