Wall St surges on possible review of Bailout plan

In the US markets, stocks clawed back more than half of the gains on increased optimism that the government will reach an agreement on a financial relief plan before the end of the week. Bargain hunting and stronger than expected economic data on consumer confidence also helped lift sentiment.

US markets rally on expectation that bailout package could be revived. Stocks recover half the losses suffered on Monday. Bargain hunting and stronger than expected consumer confidence help sentiment. Credit markets were tight and the bond prices weaken. Dollar gains against major currencies.

The Dow gained 485.21 points, or 4.68%, to 10,850.66. The S&P 500 index advanced 58.35 points, or 5.27%, to 1,164.74, and the Nasdaq composite index added 98.60 points, or 4.97%, to 2,082.33.