YAHOO [BRIEFING.COM]: The stock market scored its best single-session percentage gain in almost seven weeks. The effort was broad based and came on the back of a commitment by leading officials in Europe to recapitalize the region's flagging financial institutions.

Early participants focused on news that over the weekend Germany's Chancellor Merkel and France's President Sarkozy pledged to support a plan intended to shore up capital at European banks and financial outfits. Their commitment came across as more unified than what had been previously displayed by the pair. The notion that eurozone leaders will be more concerted in their efforts to stabilize the region's precarious financial conditions, thereby reducing the risk of contagion, emboldened buyers, who engaged in an aggressive bout of buying.

The S&P 500 rallied more than 3% for its best one-day jump since August. That helped the broad market measure push through its 50-day moving average and close above that technical trend line for the first time since July.

No specifics regarding plans to improve financial conditions in Europe are currently available, but bank stocks and financial issues performed as if the risks inherent to their positions in Europe were reduced dramatically. That gave both the KBW Bank Index and the broader financial sector gains of more than 5%.

The euro also won support from traders. The currency rallied 2.0% to $1.365 for one of its best single-session percentage gains in a year.

The euro's bounce put pressure on the dollar, helping to amplify buying interest among commodities. Oil was an especially strong performer in the commodity complex. The energy component climbed almost 3% to close pit trade at $85.41 per barrel.

The combination of higher oil prices and a stronger equity market helped energy stocks rally to a 4.5% gain. They were second only to financials. Materials plays, also helped by higher commodity prices, swung to a 4.2% gain.

Bonds will re-open for regular trading hours tomorrow. The market was closed today in observance of Columbus Day.

Weakness in the dollar and corresponding strength in the euro, following commentary from French President Sarkozy and German Chancellor Merkel, was the focus of commodities today. The two leaders met in Berlin this weekend for a bilateral summit, and they set a deadline at the end of Oct to reach an agreement on a comprehensive package of measures to stabilize the eurozone... Precious metals rallied on the dollar weakness. Gold posted gains of 2.2% to close at $1670.80 per ounce, while silver prices added 3.2% to finish at $31.98 per ounce.

Crude oil futures rallied on the dollar's weakness, as well as the strength in equity markets. Futures gained 2.9% to close at $85.41 per barrel. Crude put in highs at $86.09, its best levels since Sept 21. Natural gas ended up 1.7% at $3.54 per MMBtu.

Advancing Sectors: Financials +5.1%, Energy +4.5%, Materials +4.2%, Industrials +3.6%, Consumer Discretionary +3.5%, Tech +3.4%, Health Care +2.5%, Telecom +2.1%, Utilities +2.0%, Consumer Staples +1.6%
Declining Sectors: (None) DJ30 +330.06 NASDAQ +86.70 NQ100 +3.5% R2K +4.4% SP400 +3.6% SP500 +39.43 NASDAQ Adv/Vol/Dec 2125/1.57 bln/435 NYSE Adv/Vol/Dec 2784/888 mln/256