The stock market posted its biggest one-day gain since March 23, 2009 on Monday. The jump was in response to Europe’s $1 trillion rescue plan to aid troubled countries such as debt-plagued Greece and stabilize the euro, said CNN.com.

The Dow Jones surged 405 points, or 3.9 percent, while the S&P 500 rose 49 points, or 4.4 percent, and the Nasdaq jumped 109 points, or 4.8 percent.
Markets around the world also rose as the European Union took aggressive steps to contain a potential financial meltdown.

The rally comes after Thursday’s so-called “flash crash” when the Dow plummeted 998.50 points, the market’s biggest decline during one trading day, until it recovered about two-thirds of the loss at the end of the day. Thursday’s crash was blamed on a computer glitch, and on Monday the SEC and major stock exchanges agreed on a new framework to handle erroneous trades, said CNN.com.

Boeing, Caterpillar, IBM, Hewlett-Packard, McDonald’s and Procter & Gamble were among the companies that posted the biggest gains Monday.

The stock market dropped for the second week in a row, the first two-week decline since March, according to the National Business Review.

The Dow Jones Industrial Average lost 34.01 points to end at 8438.39, a 1.2 percent drop for the week ending on June 26. The S&P 500 index dropped 2.9 percent overall in the two weeks since June 15.

Energy producers, makers of industrial equipment and real-estate companies posted the biggest losses as oil prices declined and new home sales fell, said the National Business Review.

Some analysts say a surprise decline in consumer confidence numbers may have driven down stocks.

In one bright spot, the Nasdaq rose 0.6 percent for the week ending June 26, driven largely by technology stocks.

The stock market faces further volatility as a flurry of economic data, including June jobs numbers and housing and manufacturing reports, are released in the first four days before the July 4 holiday.