Wall Street climbed back on an upward track yesterday, rising in late trading as a surge in gold and other commodities prices gave investors a reason to snap up energy and materials stocks.
But the market's closing levels masked the fact that it was a confusing day on the Street. Investors had sent stocks higher until midafternoon on expectations of a bailout for the Detroit automakers, but the market forfeited that advance on signs that the plan was running into opposition from Republican lawmakers.
Investors then set aside their uncertainty and plowed back into stocks as they saw the rebound in commodities.
Gold picked up $34.70 an ounce to close at $807.10 on the New York Mercantile Exchange, lifted by a weaker dollar, but also because investors seemed to be more willing to take on some risk. Oil prices also rose on the New York Mercantile Exchange, up $1.45 to $43.52.
Still, investors are extremely wary about the many trouble spots in the global economy. And so shifting sentiment over a possible bailout deal for Detroit's Big Three automakers tugged at stocks throughout the session - including financial stocks. Financial houses that hold investments in the car companies could see further strain on their balance sheets if big players like General Motors Corp. file for bankruptcy.
The Dow Jones industrial average rose 70.09 points, or 0.81 percent, to 8,761.42. The S&P 500 index rose 10.57, or 1.19 percent, to 899.24, and the Nasdaq composite index rose 18.14, or 1.17 percent, to 1,565.48.
