Stocks Surge on Citi Bailout

The Dow gained 388.68 points to close at 8,435.1, and the S&P and Nasdaq added 6.4 percent and 6.3 percent, respectively, on news the government will guarantee $306 billion of toxic Citigroup assets and a pledge by lawmakers to pass another economic stimulus package. Citigroup led the charge, rebounding 58 percent after losing 60 percent of its market value last week; JPMorgan Chase and Bank of America also gained more than 20 percent in trading today. “Job one is to continue to repair the psychology of this market, and the bailout or the help for Citigroup is an important part of that puzzle,” James Dunigan of PNC Wealth Management in Philadelphia told Bloomberg. But get ready for yet another shift from Washington: Treasury Secretary Hank Paulson is “considering asking Congress for the remaining $350 billion in the Troubled Asset Relief Program to help revive consumer credit,” a move he all but ruled out last week, Bloomberg reports.