US stocks rose, led by banks and builders, after investors in Singapore and the Middle East agreed to inject $11.5 billion into UBS AG and home sales unexpectedly advanced.

Financial shares in the Standard & Poor’s 500 Index climbed to the highest level in a month, boosted by JPMorgan Chase & Co., Citigroup Inc. and MBIA Inc. D.R. Horton Inc., the largest U.S. homebuilder, gained after contracts to buy previously owned homes increased for a second month. Energy producers and miners advanced on speculation a Federal Reserve interest rate cut tomorrow will spur economic growth.

The S&P 500 added 11.3, or 0.8 percent, to 1,515.96. The Dow Jones Industrial Average increased 101.45, or 0.7 percent, to 13,727.03. The Nasdaq Composite Index gained 12.79, or 0.5 percent, to 2,718.95.

The Dow Jones Stoxx 600 Index of European shares added 0.6 percent to 375.06. Shares were also boosted after strategists at Lehman Brothers Holdings Inc., Bank of America and Deutsche Bank AG said the S&P 500 will rise in 2008.

U.S. stocks gained last week after President George W. Bush announced a plan to freeze some mortgage rates to prevent foreclosures from causing a recession. [MORE]