US mkts surge on likely approval of bailout proposal

In the US markets, stocks snapped a three day losing streak as lawmakers drew close to an agreement for a Wall Street bailout. Financial stocks lead the rally from the front. All three indices in fact posted gains above a percent.

Meanwhile the fate of the USD 700 billion Wall Street bailout remained unclear as a White House meeting of both parties ended without an agreement and some participants said talks had hit a major snag.

US Congressional leaders said fundamental bipartisan agreement reached on bailout plan. President Bush met key lawmakers to discuss details of plan. The USD 700 billion plan includes help for homeowners struggling to pay mortgages and includes limits on executives' pay.

The Dow gained 196.89 points, or 1.82%, to 11,022.06. The S&P 500 index rose 23.31 points, or 1.97%, to 1,209.18 and the Nasdaq composite index was up 30.89 points, or 1.43%, to 2,186.57.