Late Rally Lands Dow Up 410

Fed may have plan to quarantine bad debt; banks see gains
By Nick McMaster,  Newser Staff
Posted Sep 18, 2008 3:25 PM CDT
Late Rally Lands Dow Up 410
Trader David Eilenberg leans on a phone post as he works on the floor of the New York Stock Exchange today.   (AP Photo)

The markets rallied late in today’s rollercoaster session, keying on a $360 billion plan to shore up money markets and reports that the Fed might form a government body to absorb firms’ bad credit bets, the Wall Street Journal reports. The Dow gained 410.03 to close at 11,019.69. The Nasdaq closed up 100.25 at 2,199.10, while the S&P 500 rose 50.01, settling at 1,206.40.

AIG gained 18.7% in the wake of its $85 billion government bailout, although it will be removed from the Dow’s 30 components in favor of Kraft on Monday. Washington Mutual rose 37.8% on reports it is seeking a buyer. Bearish sentiment moves “from one stock to the next and nobody knows what they're going to,” one trader said. “They're just hitting them now and I don't know what turns them around.” (More Dow Jones stories.)

Get breaking news in your inbox.
What you need to know, as soon as we know it.
Sign up
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X