US stocks soared today as Congress neared a deal on a $700 billion financial sector bailout that investors hope will thaw credit markets and revive lending.
All three major US stock indexes jumped almost 3 per cent to session highs in anticipation of a bailout agreement in afternoon trading.
Stocks pulled back slightly, but were still up over 2 per cent as a report from the Wall Street Journalonline said the bailout bill would approve a $700 billion fund, but it would be paid in installments.
Bank shares spearheaded the rally, with JPMorgan Chase and Bank of America among the biggest boosts for the Dow and S&P 500.
Fear that Congress would delay the rescue package weighed on stocks earlier this week, but optimism waxed after Sen. Chris Dodd, chairman of the Senate Banking Committee, said that House and Senate negotiators had reached "fundamental agreement" on the principles of a bailout.
The Dow Jones industrial average was up 262.60 points, or 2.42 per cent, at 11.087.77, after shooting up nearly 300 points - or almost 3 per cent - to a session high at 11,129.19 on anticipation of an agreement on the bailout bill.
The Standard & Poor's 500 Index was up 28.85 points, or 2.43 percent, at 1,214.72, slightly below a session high at 1,220.03. The Nasdaq Composite Index was up 44.70 points, or 2.07 percent, at 2,200.38, also near its session high at 2,210.74.
Reuters