(By Salman - iStockAnalyst Writer)US stocks finished with gains on Tuesday as investors greeted Treasury's move to provide $5 billion in rescue package to GMAC, the financing arm of troubled automaker General Motors.

The Dow Jones Industrial Average rose 184.46 points or 2.17% to finish at 8,668.39. The S&P 500 increased 21.22 points or 2.44% to 890.64. The Nasdaq Composite added 40.38 points or 2.67% to 1,550.70.

The US government pledged $6 billion in support of struggling automaker General Motors's (NYSE: GM) finance arm GMAC. The Treasury said in a statement on Monday that it will purchase a $5 billion stake in GMAC and lend $1 billion to GM so that it can contribute to the lender's reorganization as a bank holding company. GMAC President Bill Muir said in a statement "The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers. We will continue to employ responsible credit standards, but will be able to relax the constraints we put in place a few months ago due to the credit crisis." Earlier this month, Treasury agreed to extend a lifeline of $13.4 billion to GM and Chrysler LLC. Shares of General Motors surged 20 cents or 5.56% to $3.80. Rival carmaker, Ford Motor Co. (NYSE: F) jumped 7 cents or 3.15% to $2.29.

Alcoa Inc. (NYSE: AA), the largest US aluminum producer, soared 96 cents or 9.87% to $10.69.

Equipment maker Caterpillar Inc. (NYSE: CAT) climbed $1.32 or 3.12% to $43.66. Boeing Co. (NYSE: BA) finished at $41.25, up $1.26 or 3.15%.

Shares of Financials gained. J.P Morgan (NYSE: JPM) rallied $1.23 or 4.13% to $31.01. Bank of America Corp. (NYSE: BAC) rose 30 cents or 2.32% to $13.24. Citigroup, Inc. (NYSE: C) added 23 cents or 3.50% to finish at $6.80. Goldman Sachs (NYSE: GS) increased $5.50 or 7.18% to $82.06.

Drug maker Merck & Co. (NYSE: MRK) shot up $1.30 or 4.59% to end at $29.60.

Walt Disney Co. (NYSE: DIS) gained $1.01 or 4.70% to finish the day at $22.48.

Among technology stocks, chipmaker Intel Corp. (NASDAQ: INTC) climbed 56 cents or 3.96% to $14.96. IBM (NYSE: IBM) rose $2.30 or 2.83% to $83.55.

Late on Monday, ratings agency Moody's Investors Service and Standard & Poor's downgraded the credit ratings of Dow Chemical Co. (NYSE: DOW). On  Sunday, Kuwait abandoned a deal to form a $17.4 billion petrochemical joint venture with U.S. chemical giant. Shares of Dow Chemical were up 23 cents or 1.50% at $15.55.

Among retailers, Macy's Inc. increased 52 cents or 5.85% to $9.41.J. C. Penney Co. (NYSE: JCP) advanced 85 cents or 4.76% to $18.69.

According to reports, insurer Nationwide Mutual Insurance Co. will go ahead and close a $2.48 billion deal on Jan.