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NEW YORK — Wall Street barreled higher today in a help rally over the government’s plan to bail out Citigroup — a touch it hopes will help quiet some of the uncertainty hounding the financial sector and the overall economy.

The Dow Jones industrials gained 396.97, or 4.9 percent, to close at 8,443.39. Near the close the Dow had soared more than 500 points.

Broader stock indicators likewise jumped. The Standard & Poor’sitting 500 index advanced 51.78, or 6.5 percent, to 851.81, and the Nasdaq composite index rose 87.67, or 6.3 percent, to 1,472.02.

The advance comes even after the markets anticipated last week that some sort of rescue for Citigroup could occur. But investors nonetheless appeared emboldened by the U.S. government’s decision late Sunday to invest $20 billion in Citigroup and security $306 billion in risky assets.

Wall Street’s enthusiasm surged not solely because the bailout answered questions about Citigroup but also because numerous observers saw the move viewed like offering a template for how the government might carry out other bank stabilizations.

The market rallied following announcement of the plan by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) to stabilize Citigroup. It’s only the latest effort this year to support a banking system troubled by bad debt and flagging confidence. Besides implementing its $700 billion bailout plan conducive to the overall monetary busy vigor, the government has bailed out insurance giant American International Group (AIG) and taken over lenders Fannie Mae and Freddie Mac.

Jim Baird, leader investment adroit tactician through Plante Moran Financial Advisors, before-mentioned Wall Street was calmed by the government’s decision to help prop up Citigroup, but he predicted that the incipient ardor could give opportunity to pass to further questions about the effectiveness of the command’s array of efforts to work with needle and thread up problems in the financial sector.

“I think, at a minimum, what you’re seeing today is more relief that, in the beginning of all, they’re stepping in to do something,” he uttered. “There’s still more questions than answers surrounding whether what’session been done is going to be sufficiency.”

The rise in stocks follows a rally Friday that axiom the Dow industrials jump 494 points, or 6.5 percent. The other greater indexes also rose sharply. Still, stocks ended the week with a loss after hard selling Wednesday and Thursday.

Lancz declared Friday’s rally and today’session follow-up reflect a renewed sense that Washington is taking steps to help repair the markets and that the scope of selling for much of last week had left the market overdue for a rally.

“The market is looking for some stewardship. It’s at smallest adding to the bleak dependence that investors have,” he reported, referring to the Citigroup plan as well taken in the character of the overtures of the still-forming Obama administration.

Bond prices were mixed today for the reason that investors examined the government’s bailout plan for Citigroup. The yield on the benchmark 10-year Treasury catalogue, which moves opposite its value, rose to 3.36 percent from 3.20 percent late Friday.

The Treasury bill market showed continuing high demand, a sign of investors’ warn. The bend on the three-month T-bill, considered one of the safest investments, fell to 0.02 percent from 0.04 percent late Friday.

Oil rose $4.57, to close at $54.50 a barrel on the New York Mercantile Exchange. Prices gain the point $55.30 at one point.

Despite today’s gain, Baird said the irregularity over whether the government’s cocktail of lead investments in financial houses and support of debt obligations will prove effective has led to the stock place of traffic mutability. The concerns about banks and the broader thriftiness are likely to persevere, he related.

“Just the sheer breadth of potential outcomes is very, very wide which I think makes it difficult for investors to fix how make you play it from here.”

Stocks briefly pared their gains as President-elect Obama formally named his economic team but didn’t offer specifics of an economic stimulus package nor state that he would push back a plan to raise taxes on the richest Americans. He reiterated his goal of creating 2.5 million jobs during the nearest two years.

Alan Lancz, director at investment research group LanczGlobal, said that while the market might have wanted a firmer commitment against raising taxes, it was too pretty soon for Obama to outline specifics. Lancz expects the new administration wouldn’t rush to instrument the hikes if the economy appeared too weak.

“There’s so various balls in the appearance right it being so that he’d be foolish to make specific comments,” Lancz said, noting that the housekeeping engraving could change greatly by Inauguration Day, which is Jan. 20.

Wall Street shrugged off a larger-than-expected globule in sales of existing homes last month as investors instead focused on the government’s plans in spite of the financial sector. And while the saddle-cloth numbers fell short of expectations, Wall Street expected sales would fall sharply after last month’s upheaval in the financial markets.

The National Association of Realtors says sales of existing homes fell 3.1 percent to a seasonally adjusted annual traduce of 4.98 million in October. That’s prostrate from 5.14 million in September.

The financial sector led today’s send, fueled by a sense that the ruling power potency be developing a more nuanced yet ready-to-apply physic for financial firms. Just after the close, Citi share were up $2.07, or 54.9 percent, to $5.84 following the government’session decision to inject capital into the meeting of friends.

Overseas, Britain’sitting FTSE 100 jumped 9.8 percent, Germany’s DAX alphabetical table of references surged 10.3 percent, and France’s CAC-40 rose 10.1 percent. Hong Kong’session Hang Seng index fell 1.6 percent; markets in Japan were closed for a f.

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