Stocks Surge in Late Comeback

Depressing day reverses on news of possible Ambac bailout
By Nick McMaster,  Newser Staff
Posted Feb 22, 2008 3:47 PM CST
Traders and Specialists work the trading floor of the New York Stock Exchange before the closing bell in this undated file photo. (AP Photo/David Karp)   (Associated Press)
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(Newser) – Traders faced heavy losses across the board today until a late rally on news of a possible bailout for a major bond insurer sent prices soaring to gains, MarketWatch reports. The Dow rose 96.72 points to close at 12,381.02, the Nasdaq gained 3.57 points to 2,303.35, and the S&P 500 rose 10.58 points to 1,353.11.

Although the Dow had fallen as much as 129 points earlier, it revived on news that Ambac Financial Group, hit hard by the subprime collapse, may receive a bailout as soon as Monday. "If Ambac gets bailed out, it would imply that the market's not going to zero and the world's not coming to an end,'' said one head equity trader.