New York City – U.S. Stocks Climb on Fannie Mae, Freddie Mac Takeovers

New York City – Financials propped up the Dow rounding the bend Monday but techs limped to the finish line as investors worry that the bailout of Fannie Mae and Freddie Mac might not fix the bigger problems with the housing and credit markets.

New York City – The U.S. government on Sunday seized control of Fannie Mae and Freddie Mac in what could be its biggest bailout ever. The CEOs of both companies were ousted and the Treasury is expected to put up as much as $200 billion for the rescue effort.

“This [bailout] gave a lot of the banks a nice boost but there wasn’t really a broader impact as it does very little to change what’s forced the market down in recent weeks, which is that economies are struggling not just in the U.S. but globally — this so-called demand destruction,” said Marc Pado, U.S. market strategist and technical analyst at Cantor Fitzgerald in San Francisco.

The Dow Jones Industrial Average shot up like a rocket at the opening bell, surging more than 300 points before pulling back to close at 297 points, at 11,510.