The US Treasury Department decided to inject US$20 billion to the second largest US bank by assets, after backing the bank with US$25 billion last month under the Troubled Asset Relief Program.

Citigroup also received US$306 billion of US government guarantees for troubled mortgages and toxic assets.

Citigroup's stock jumped 58 percent after dropping 60 percent last week. Other financial giants like JP Morgan Chase & Co., Bank of America Corp and Goldman Sachs jumped more than 21 percent sending the S&P 500 up to a record gain.

Also yesterday, President-elect Barack Obama unveiled his economic team pick to shore up financial markets and tackle the worst financial crisis since the Great Depression in 1930s.

The Dow Jones average rose 396.97, or 4.93 percent, to 8,443.39.The Standard & Poor's 500 index advanced 51.78, or 6.47 percent, to 851.81, and the Nasdaq composite index rose 87.67, or 6.33 percent, to 1,472.02.