DOW Increases 485 Points

September 30, 2008 12:00:00 AM PDT
Wall Street posted a huge increase Tuesday in the wake of Monday's crash.On Wall Street, investors are bargain hunting after yesterday's unprecedented selloff.

On this normally tension filled trading floor, the stress is even more palpable than it has been in years.

The big question of the day-what now? People who work on Wall Street are wondering if they'll be able to keep their jobs.

"My worries are I'll be out of a job out of a house out on the street," said stock trader John Foschio.

But others are feeling optimistic while they watching stocks struggle to claw their way back.

After the opening bell the market soared more than 200 points as some investors picked up bargains: betting Washington will eventually pass a bailout bill and stabilize the financial system.

"It's reached its lowest point and will only go up from here," said Lucy Mansuetto with the New Yorker.

Wall Street is struggling to pick up the pieces after yesterday's stunning announcement. Yesterday's failure has triggered concerns the economy may fall into an even more painful recession.

Another problem that now affects every American is that credit markets are constricting. That means it's going to be harder for companies to borrow money to pay their employees and for consumers to get a loan to buy a car, house, or pay for college.

U.S. allies around the world were rocked by yesterday's record sell-off on Wall Street.

European leaders said Washington must take the lead in solving the financial crisis because it's affecting their markets.

Asian markets plummeted on the news the bailout plan failed and the same happened in Russia, South Korea and Taiwan. In Australia, Leaders are scrambling to find a fix. "This is necessary for the stabilization of the U.S. financial markets, it's necessary for the stabilization of global financial markets," said Australian Prime Minister Kevin Rudd.

As the day progressed, global markets staged a dramatic turnaround, in part by investing in staples such as gold or U.S. Treasury Bonds. Government intervention is also helping. France alone is pumping more than eight and a half billion dollars into one of its major banks. The Irish government is placing unlimited guarantees on savings for its largest banks to ease fears for everyday customers.


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