Financial Times FT.com

US stocks surge in late trade

By Alistair Gray in New York

Published: September 18 2008 13:52 | Last updated: September 18 2008 21:47

The prospect of the creation of a Resolution Trust Corporation-style plan to deal with the turmoil in financial markets led stocks to their biggest rally in nearly six years late in the session.

A violent swing in financials reversed the rout of the previous day as investors responded positively to the prospect of a Treasury plan similar to that which helped bring an end to the savings-and-loans crisis of the 1980s and early 1990s.

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