U.S. stocks climbed, adding to a rally across Europe and Asia, on speculation the government takeover of Fannie Mae and Freddie Mac will stabilize the global financial system battered by $507 billion in credit losses.

The S&500 Index surged 25.48 points, or 2.1 percent, to 1,267.79, its steepest gain since Aug. 8. The Dow Jones Industrial Average rose 289.78, or 2.6 percent, to 11,510.74. The Nasdaq Composite Index increased 13.88, or 0.6 percent, to 2,269.76.

(Bloomberg.com)