U.S. stock index futures rose Tuesday after the previous day’s record-setting rally, as investors cheered the U.S. government’s bank-recapitalization plan.

This morning, U.S. President George W. Bush unveiled a US$250 billion plan by the government to directly buy shares in the nation’s leading banks.

Further, the U.S. Federal Reserve will finalize a new program to serve as a buyer of last resort for commercial paper, the short-term debt used by a range of firms to meet short-term funding needs. The paper had been a popular investment with money-market funds before the credit crisis.

On Monday, U.S. equity markets snapped a brutal losing streak as the Dow Jones industrial average enjoyed its biggest one-day point gain ever following new moves by governments to shore up the global financial system.

The Dow Jones industrial average rose 936.42 points, or 11.08%, to 9,387.61, its biggest one-day point gain ever and its biggest percentage gain since Mar. 15, 1933.

The S&P 500 also marked its largest single-day point gain, up 104.13 points, or 11.58%, to 1,003.35. The tech-heavy Nasdaq composite index was up 194.74 points, or 11.81%, at 1,844.25, its biggest one-day point gain since January 2001.

Canadian financial markets were closed Monday in observance of Thanksgiving Day.

Wall Street’s gains spurred rallies Tuesday in Asia and Europe.

Japan’s Nikkei index jumped 14.2%, gaining 1,171.14 points to 9,447.57 — its largest increase ever.

Hong Kong’s Hang Seng index rose 3.2%, after advancing more than 10% Monday.

The FTSE 100 jumped 5.7% early in the afternoon in London, while Germany’s DAX rose 5.2% and the French CAC-40 rose 5.3%.

Here at home, the Canadian dollar regained some of the ground it lost last week, rising more than 3¢ against the U.S. greenback to US87.94¢.

The U.S. dollar fell against many major currencies in early trading Tuesday as oil prices rose US$2.68 to US$83.86 a barrel.

Gold futures rose US$10 to US$852.50 an ounce.

In today’s earnings news, PepsiCo posted a 9.6% decrease in third-quarter net income amid weak U.S. beverage sales. The company cut its full-year revenue view because of the rebounding dollar and said it will cut costs by $1.2 billion the next three years.

Johnson & Johnson posted a 30% rise in third-quarter net income, as strong consumer-products and medical-devices sales offset the impact of stepped-up competition from generic-drug makers.