But hopes for a rescue that would serve to calm global financial markets roiled by a streak of Wall Street disasters, including the bankruptcy of Lehman Brothers, faded after the closing bell sending stock index futures lower.
AIG shares fell 48 percent after the bell after Bloomberg reported that the United States was considering conservatorship as an option for the insurer, while the New York Times said AIG had hired a bankruptcy law firm.
The Dow Jones industrial average <.DJI> rose 141.51 points, or 1.30 percent, to close at 11,059.02, while the Standard & Poor's 500 Index <.SPX> gained 20.90 points, or 1.75 percent, to 1,213.60. The Nasdaq Composite Index <.IXIC> was up 27.99 points, or 1.28 percent, at 2,207.90.
The Federal Reserve held its key benchmark U.S. interest rate steady on Tuesday, opting for the time being to soothe rattled financial markets with central bank lending facilities rather than rate cuts.
NYMEX-NEW YORK, Sept 16 (Reuters) - U.S. crude oil futures ended nearly 5 percent lower on Tuesday, down for the second day in a row, as investors continued to seek safer havens amid continued turmoil in global financial markets that's seen further
undermining fuel demand.
On the New York Mercantile Exchange, October crude
CBOT-SOYBEANS - November
SOYOIL - October
FCPO-KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives
exchange ended 5.7% lower Tuesday, after falling to their lowest level in more
than 17 months, as investors took leads from the weakness in crude oil.
The new benchmark December contract on the Bursa Malaysia Derivatives ended
MYR129 lower, at MYR2,120 a metric ton, off an intraday low of MYR2,077/ton, on
short covering.
REGIONAL EQUITIES-SINGAPORE, Sept 16 (Reuters) - Thai stocks fell to a 20-month
low on Tuesday, leading losses in Southeast Asia, as financial upheavals on Wall Street sent shockwaves through global and Asian stock markets.
Malaysia <.KLSE> gave up 1.9 percent as slumping crude oil prices hit palm oil plantation stocks, while the Philippines <.PSI> sank 4.5 percent and Vietnam <.VNI> slipped 4.4 percent.