Financial stocks led a market surge Monday after the government explained in greater detail its plans to take bad credit bets off of banks' hands.

Around 1:45 p.m., the Dow Jones Industrial Average was up 278 points, climbing above 7500 as all 30 of its components advanced. Bank of America, Citigroup and J.P. Morgan Chase saw double-digit percentage gains. General Electric, Caterpillar and Hewlett-Packard each rose roughly 6%.

The Treasury Department said Monday that a new public-private partnership could purchase $1 trillion in soured assets from banks, which would allow them to renew lending.

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