Wall Street rallied on Friday with all major indexes rising more than 2 percent as investors are awaiting a U.S. Senate vote on economic stimulus plan and U.S. government's new plan on the financial rescue program.

Stocks opened sharply higher after Senate majority leader Harry Reid said that he believed the Senate would "be able to work something out" on the package.

The Senate struggled on Friday to craft a huge stimulus package to revive the battered economy. Reid said he hoped the Senate would have a final stimulus package to vote on by late Friday afternoon.

Financial stocks jumped as Treasury officials confirmed that U.S. Treasury Secretary Timothy Geithner is to deliver a speech on Monday outlining a new plan to overhaul the government's 700-billion-U.S.-dollar financial rescue program.

Bank of America Corp. jumped 26.7 percent, to 6.13 dollars, while JP Morgan Chase &Co. rose 12.6 percent, to 27.63 dollars.

Wall Street shrugged off grim employment data. The Labor Department said U.S. employers slashed 598,000 jobs in January, the most since late 1974. The unemployment rate has risen to 7.6 percent, the highest since late 1992.

The Dow Jones industrial average rose 217.52 points, or 2.70 percent, to 8,280.59. The Standard &Poor's 500 Index gained 22.75points, or 2.69 percent, to 868.60. The Nasdaq Composite Index was up 45.47 points, or 2.94 percent, at 1,591.71.