US stocks ended higher on Wednesday following an agreement in principle between the White House and Democrat congressional leaders on a $US15 billion bailout plan for the troubled American vehicle industry.
The Dow Jones Industrial Average rose 70.09 points, or 0.81%, to end at 8,761.42 after hitting an intra-day high of 8,879.22.
The Nasdaq went up 18.14 points, or 1.17%, to 1,565.48 and the broad Standard & Poor's 500 index added 10.57 points, or 1.19%, to 899.24.
US stocks opened trading on Wednesday with optimism but turned choppy in the afternoon amid concerns the government was not as close to reaching an agreement over the struggling automakers as previously hoped, analysts said.
Opposition was reportedly running strong in the Senate where Democrats have a narrow majority.
In the most far-reaching intervention in US industry in years, the auto legislation calls for emergency government loans to car companies within days to be overseen by a "car czar" appointed by President Bush.
In return, the vehicle manufacturers would would have to cut costs, settle debts and make other changes by 31 March to show a path to viability or face possible bankruptcy.
Officials said the government could choose to revoke the loans if the companies fail to make progress, or could refuse further assistance after 31 March if the companies have no promising survival plan.
