Wall St jumps as bailout approval nears

NEW YORK - Wall Street snapped a three-day losing streak on Thursday as Congress closed in on a deal for a US$700 billion financial-sector bailout that investors hope will thaw credit markets and revive lending.

All three major indexes ended up at least 1 per cent, with bank shares such as JPMorgan Chase and Bank of America leading gains after Senate Banking Committee Chairman Chris Dodd said lawmakers had reached a "fundamental agreement" on the principles of a rescue plan.

Companies seen as economic bellwethers, such as IBM, also rose on hopes the rescue package would spur a pickup in consumer and business spending.

The Dow Jones industrial average was up 196.89 points, or 1.82 per cent, at 11,022.06. The Standard & Poor's 500 Index was up 23.31 points, or 1.97 per cent, at 1,209.18. The Nasdaq Composite Index was up 30.89 points, or 1.43 per cent, at 2,186.57.

The package to which Congress tentatively agreed would make a first slug of $250 billion available immediately, the Wall Street Journal reported, and would contain limits on 'golden parachutes' paid to company executives.

Source: Singapore Business Times - 26 Sep 2008