Updated from 4:12 p.m. EDT

The major indices in New York rocketed 6.8% or more Monday, with financials in the forefront, after Treasury Secretary Tim Geithner released the long-anticipated details of the next step in the plan to restore the health of the bank sector.

The Dow Jones Industrial Average rose 497.48 points, or 6.8%, to 7775.86, and the S&P 500 added 54.38 points, or 7.1%, to 822.92. The Nasdaq gained 98.50 points, or 6.8%, to 1555.77.

Last week marked the first two-week gain since last spring, although the advance was modest. As the new week arrived, the banks picked back up and led the ascent. Dow components Bank of America ( BAC) and Citigroup ( C) added 26% and 19%, respectively. JPMorgan Chase ( JPM) was up 25% at $28.86.

The move to the upside came after the government described a plan that will use $75 billion to $100 billion in TARP capital, along with capital from private investors, to generate $500 billion, and possibly $1 trillion over time, to buy hard-to-trade and badly deteriorated assets from banks.

"This approach is superior to the alternatives of either hoping for banks to gradually work these assets off their books or of the government purchasing the assets directly," according to the plan briefing, dubbed the Public-Private Investment Program. "Simply hoping for banks to work legacy assets off over time risks prolonging a financial crisis, as in the case of the Japanese experience."

The Wall Street Journal reported some of the details of the plan over the weekend, and as a result, investors weren't completely surprised by the proposals, said Michael James, managing director at Wedbush Morgan Securities.

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