Stocks are likely to open higher on Wednesday tracking firmer global markets after the US Federal Reserve's $85 billion rescue plan to help American International Group in exchange for a 79.9 percent stake.
The deal would avoid the biggest corporate bankruptcy ever and follows a government bailout of mortgage lenders Freddie Mac and Fannie Mae just over a week ago.
This boosted sentiment across global markets, which suffered three major setbacks on Monday, with Lehman Brothers filing for bankruptcy, Merrill Lynch being bought out by Bank of America and AIG seeking a lifeline from the Federal Reserve.
The Dow Jones Industrial Average surged 141.51 points, or 1.30 per cent, to end at 11,059.02, the Standard & Poor's 500 Index rose 20.87 points, or 1.75 percent, to finish at 1,213.57 and the Nasdaq Composite Index climbed 22.45 points, or 1.03 per cent, to close at 2,202.36.
Wednesday, September 17, 2008
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