Hope holds—for a change.
On Tuesday, the Wall Street-Washington roller-coaster seems to start all over again. Futures show stocks set to rally after having plunged the previous day, with investors still hoping Congress will find a way to approve a $700-billion financial bailout plan which the House of Representatives rejected on Monday.
"There's an overarching belief that at some point this week, whether it's Wednesday or Thursday, we'll get something passed by the House," Arthur Hogan, chief market analyst at Jefferies, says.
What You Were Reading:
- Financial Psychiatrist: Take a Deep Breath
- The Failed Bailout: Panic and Blood, at Last!
- Slideshow: Credit Crunch Battle Play-by-Play
President George W. Bush speaks briefly in a live televised segment before the market opens, reminding viewers that hope is alive because the legislative process isn't over.
"Congress must act. ...Our economy is depending on decisive action from the government. The sooner we address the problem, the sooner we can get back on the path of growth and job creation," Bush says.
Here's how September 2008 ended.
US Stock Markets:
After Monday's market bloodbath, the New York Stock Exchange enacts circuit-breaker trigger levels for the Dow in the fourth quarter. A 1100-point drop before 2pm ET will halt trading for one hour; a 2200-point drop before 1pm will stop trading for two hours; and a 3350-point drop will shut down trading for the rest of the day, regardless of what time it occurs.
On Tuesday, the Dow
rises 485.21, or 4.7 percent, to close at 10850.66, erasing much of the record 777.68-point loss it suffered Monday. But the Dow ends September down 6 percent. The blue-chip index sheds 4.4 percent for the third quarter.The S&P 500
