Fluctuating Markets Close Up

Dow returns to 11K-plus territory
By M. Morris,  Newser Staff
Posted Sep 16, 2008 3:17 PM CDT
A crowd gathers at the post that trades Constellation Energy on the floor of the New York Stock Exchange, Tuesday afternoon Sept. 16, 2008.   (AP Photo/Richard Drew)
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(Newser) – As AIG's future became somewhat clearer, the wildly fluctuating markets settled into positive territory at the end of today's session. Rumors that the Fed will bail out the mega-insurer helped nearly erase a 74% decline, Bloomberg reports. The Dow closed up 141.51 at 11,059.02, the Nasdaq gained 22.45 to 2,202.36, and the S&P 500 rose 20.86 to 1,213.56.

"It's going back and forth based on rumor and headlines and it has temporarily divorced itself from fundamental analysis," an asset manager said of the markets. The Fed's decision not to raise interest rates created a mini-dive, but the news about AIG—which was downgraded by multiple rating agencies and saw more than 1 billion shares change hands—helped drive the wider markets higher.