Wall Street has snapped back after its biggest one-day plunge in history. This comes amid growing expectations that lawmakers will salvage a 700-billion US dollar rescue plan for the financial sector.

In afternoon trading on Tuesday, the Dow Industrial Average rose more than three percent, to 10,713 after falling nearly seven percent on Monday.

Broader stock indicators also bounced higher. The S&P-500 recovered over four percent, and the Nasdaq composite index rose nearly four percent. Traders say Tuesday's improved numbers brought "a great sense of relief".

But the seized-up credit markets where businesses turn to raise money showed no sign of relief. Traders warned a bailout plan is needed to sweep away the fears that hobbled the credit markets.

The benchmark London Interbank Offered Rate rose sharply, making it more expensive and difficult for consumers and businesses to borrow money.

(CCTV October 1, 2008)