North American markets made triple-digit point gains Monday, as investors on both sides of the border appeared to welcome a major spending initiative put forth by U.S. President-elect Barack Obama.
In Toronto, the S&P/TSX composite index rose 450.09 points to 8,567.12.
Meanwhile, the Dow Jones industrial average went up 298.76 points to 8,934.18 in early afternoon trading while the Nasdaq composite index jumped by 62.43 to 1,571.74.
The gains come as Obama announced a major U.S. public works spending program over the weekend -- the largest since the interstate highway system was built more than 50 years ago.
The plan is expected to boost the economy by creating thousands of jobs for U.S. workers.
"We've got to provide a blood infusion to the patient right now to make sure that the patient is stabilized. And that means that we can't worry short term about the deficit. We've got to make sure that the economic stimulus plan is large enough to get the economy moving," Obama said during an interview on NBC's "Meet the Press" on Sunday.
Obama has not yet announced how much the program will cost.
Meanwhile, it appears U.S. automakers will receive billions in bailout cash within the next week.
Adding to investor confidence, Chinese officials are reportedly meeting this week to talk about expanding their US$586 billion stimulus package.
India's government also took steps to bolster its economy Sunday, announcing $4 billion in new spending and tax cuts.
"The hour is darkest before the dawn and while the economic backdrop is absolutely dire, policy makers have now moved to an aggressively accommodative stance," Jeremy Batstone-Carr, head of research at Charles Stanley in London, said Monday.
On Tuesday, it is widely anticipated that the Bank of Canada will again cut its key interest rate by at least half a point to 1.75 per cent.
With files from The Associated Press
